non qualified annuity beneficiary trust
Client sole beneficiary of a trust that ends with death of grantor inherited 1 million dollars worth of annutiy with about 500thousand built in income. She would like to stretch the reporting of this out as long as possible.
Can she choose the 5year withdraw ?
What about over her lifetime.
I am flumoxed by the trust being the beneficiary ? Is this a problem.
She is under 59 1/2 but it is due to a death.
Thanks
Permalink Submitted by Al Fry on Wed, 2007-10-10 21:02
She is at the mercy of the claims department. If payable to the trust, its probably going to be lump sum or 5-year deferral. If the trust is terminating and IF one could get a court order ordering the transfer to the beneneficiary it MAY be possible to get a stretch-out. One carrier has a pending PLR to allow a NQ stretch in a trust (similar to IRAs), but bnothing published yet.