I have a client who owns three IRA annuities. The client is 80 years old.
The client was single when he purchased the annuities. His three children are currently equal primary beneficiaries.
These are Fixed Annuities with 3–5-year guaranteed rates. At the end of the guarantee periods the client finds the best rates for like annuities and does a trustee-to-trustee transfer to the new annuity.

The client got married in 2022. This is a second wife. She is 75 years old.
• Husband is currently the owner and annuitant on the annuities.
• Upon his death, he wants his wife to receive RMDs only.
• Upon spouse’ death, he wants the remaining balances in the annuities to go to his three adult children. They should be
secondary beneficiaries and each child should receive their 1/3 of remaining annuity value.

I believe this will require a trust to accomplish. In this case, we want the spouse to be the income beneficiary and the children to receive what’s left when the spouse dies.

I am not sure of the mechanics of setting up the annuities. I understand that the IRA trust must be the primary beneficiary of the annuity upon the husband’s death. Do we treat the children as secondary beneficiaries on the annuity paperwork. (The children are all adults). The children may want to continue with RMD’s or withdraw funds all at once. Or must this be covered in the trust language.