Hi,
I have a client husband & wife….
Husband is the Owner & Annuitant of a large Non-qualified annuity..
I would like to change the wife to the annuitant….& can keep the husband as owner if need be…
The annuity contract is Surrender free & has large gains in the contract & we can drop the living benefit rider.
The wife has stage 4 cancer that may be considered terminal. and we are considering a new annuity contract that guarntees 5% increase on the death benefit that will be payable to other family members for protection from market losses but still have market upside.
The husband & wife do not need income from this investment…

Please advise for ideas of how to get funds on wifes life without triggerring income taxes on gains..

Thanks John from MN