Non qualified annuity

A non qualified deferred annuity has a trust as beneficiary. At owner’s death is all of the gain inside the annuity taxable or does the surviving spouse have the option to take over ownership and continue the tax deferral with no immediate tax due until the surviving spouse’s death? Which code section allows this? Attorney says tax is due at death. I believe spousal continuation rules allow continued deferral.



Many annuities allow the spouse to continue but not all. You need to read the provisions of the annuity contract because there are no rules that apply to all of them.



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