anuuity change of owner would be taxed, correct?
have client who is 91 with an annuity value of 22k and cost basis of 10k
if she changes the owner to her son, will that not cause a taxable event to her son or her for the 12k in gain?
Thank you,
Douglas
Permalink Submitted by Alan - IRA critic on Wed, 2016-04-13 04:17
If annuity was issued after 4/22/1987, the client would be taxed on the earnings upon change of ownership. There are also gift tax implications since the annuity is worth more than 14k.