Non Qualified Annuity Beneficiary
I have a client that is requesting her father purchase a NQ annuity. The father has a revocable trust and wants to name that as the beneficiary. Should we be naming the two children instead so they could continue this contract up on death?
Permalink Submitted by Al Fry on Fri, 2008-06-20 20:07
If his trust is named, it will be a “1 or 5” year payout. If he names the children direct, they’ll have several options, including a life-expectancy stretch. They must take a distribution within 12 months of his death, o/w they’ll be stuck with the 5-year deferral.