NQ VA trust owned death claim
A revocable trust owned a NQ VA with an 81 old male annuitant who died one year later in 2008 and the beneficiary is the same, now irrevocable trust. The 5 year death claim settlement is due to payout Tuesday into the irrev trust which benefits the 82 old widow.
Does anyone know a way to prevent the taxable event? Apparently a 1035 exchange will not rescue her nor will a 60 day roll over to a new NQ VA owned by the trust.
Will the income be able to be paid out to the beneficiary so that the $32k gain over basis is not taxed at trust rates?
Thank You
John Taylor, OSJ for rr who should not have had the NQ VA owned by a trust.
Submitted by John Taylor on Thu, 2013-05-23 19:42