Client put in 15k in a NQ annuity individual account. The death benefit is 22k.

The client passed away and the husband in the beney.

The claims personnel at Brighthouse annuity is claiming:

1. That he could do a 1035 transfer as a non taxable event. I told him that would not work. if it goes into his name under a new contract he will receive a 1099 and be taxed on the gain of the 7k, isn’t that correct?

2. If the husband takes a NQ stretch from Brighthouse, (not a 5yr deferral) the claims department is stating that the husband is only going to get 5yrs to income and cannot keep the NQ stretch going over 5yrs, is that correct?

Thank you for any help.
Douglas