Bank been the Owner, Custodian (FOB clients name) and Beneficiary of an annuity.
Bank asks clients to sign a … Change of custodian dealer/ broker form … and uses the signed form to name themselves owners and beneficiary of the annuity without disclosing that to the client. Later the client finds out that he had lost the ownership of his annuity contract to the Bank and that he had been delegated to been only the annuitant. Upset the client asked the Bank to transfer his annuity to another Bank and the Bank refused to do that.
Permalink Submitted by Alan - IRA critic on Thu, 2022-07-28 23:03
Permalink Submitted by David Carrell on Wed, 2022-08-03 22:16
Permalink Submitted by David Carrell on Wed, 2022-08-03 22:17
Permalink Submitted by Alan - IRA critic on Thu, 2022-08-04 16:04
There should not be any material difference to the IRA owner. P 7 of the aforementioned link explains the difference in titling between an IRA annuity held directly with the insurance company, and a custodial IRA in which the IRA custodian (bank in this case) purchases the annuity on behalf of the IRA owner. In the latter case, the IRA owner would request any changes through the bank and the bank would transact with the insurance company. This does process does not compromise the interests of the IRA owner, who should have the same control of the annuity investment regardless of the title format. For those who prefer greater direct control, they should transfer IRA money directly to the insurance company which will be issuing the annuity rather than purchasing it through a custodial IRA setup.