My recently deceased client had a NQ annuity, owned by his revocable grantor trust, with his 4 children as the beneficiaries of the annuity. In speaking with the insurance company they are stating that since the annuity was trust owned the beneficiaries do not have the option of receiving their portions tax-deferred via a NQ beneficiary annuity, but rather the monies can be taken either in lump sum or paid out over up to 5 years. With either option issuing any 1099s in the name of the original revocable grantor trust, not the individuals. Does this sound right to anyone else? I would think regardless of the annuity’s ownership arrangement that the children would have the option of taking monies via a beneficiary annuity if they are the named beneficiaries. Thanks for any and all input.