Another IRA and Trust Question
From a 79 year old widow who asked for my help. From the variable annuity statement:
Type: IRA – Traditional
Owner: Jones Family Living Trust
Annuitant: Billy Jones DEC
Mr. Jones died last year. I have not contacted the company but they have told Mrs. Jones that she must take the money out in 5 years.
There is also a non-qualified annuity in the same situation.
Solutions?
Thanks,
David
Permalink Submitted by Alan - IRA critic on Wed, 2015-05-20 16:08
The living trust should not have been titled as the IRA owner. Only an individual can own an IRA. The widow should transfer the death benefit to her own IRA and can then stretch the IRA over her life expectancy. which will be considerably longer than 5 years. The options for the NQ annuity may be different, but if she does not like them she might be able to do a 1035 exchange to another contract.