NQ Stretch
Client just passed leaving a large NQ annuity owned by his trust with his trust as beneficiary. We have found one company that will “see through the trust” and do a NQ stretch based on the oldest listed human beneficiary’ life expectancy. Others will not touch it saying it cannot be done. Who is right? Thanks.
Permalink Submitted by mk foss on Tue, 2011-01-11 23:33
There is no standard rule for NQ annuities. The annuity contract will spell out how the benefits are paid at the death of the owner. Somey annuity providers don’t even accept trust beneficiaires. I’m sure that they’re all right by the terms of their own annuity contract. You’ll need to find something in the fine print to overrule them.
Permalink Submitted by Al Fry on Thu, 2011-01-13 16:48
NQ Stretches payable to personal natural benes have been blessed by several PLRs. There is no such authority to allow a NQ stretch to a non-natural bene. Every NQ annuity authority I have talked to on this agrees it cannot be done. Do not think doing so would survive an audit.