Change of Ownership Tax Consequences

[seanfitz]

Can anyone confirm the tax consequences to a change of ownership for a non-qualified annuity contract between spouses? I believe it to be a non-taxable event. Please help...

 

[insuranceexec]

May I ask why you are changing the ownership?

Assuming all things are "normal;" then yes, there are no tax consequences.

 

[seanfitz]

Thank you for your response. We are working with my client's attorney to equal out some of the assets for estate planning purposes. MetLife is saying it would be a taxable event?? Not sure why, the contract was issued after 1987 and should not be a taxable consequence. I was looking for confirm.
Thanks.
fitz

 

[insuranceexec]

Thank you for your response. We are working with my client's attorney to equal out some of the assets for estate planning purposes. MetLife is saying it would be a taxable event?? Not sure why, the contract was issued after 1987 and should not be a taxable consequence. I was looking for confirm.
Thanks.
fitz

The company has to be willing to transfer the cost basis. Maybe some companies will not.

Let me know how it goes.