JoeAnnuity
Expert
- 31
Hi,
I'm a little rusty on my No-Qual death benefit options for a non-spouse. Here is the situation I am working with:
The annuitant on a trust owned contract passed away and her 3 sons are the trustees as well as the trust beneficiaries. They want to be able to defer taxes as long as possible. If I remember correctly the options for a non-spouse death benefit was 1) defer for 5 years and then lump sum 2) lump sum 3) some sort of annuitization. The agent said the current company (American Equity) would split the contract up into 3 contracts for each son and they will 1035x the contract to where ever they choose, as long as the other company would accept it. He also said that Safeco would be a company willing to accept the transfer but he doesn't like their EIA product
Sp I guess my questions are:
1) According to IRS regulations, can these even be done?
2) If so, do you know of any other companies that will accept this kind of transfer?
Thanks in advance for your help.
I'm a little rusty on my No-Qual death benefit options for a non-spouse. Here is the situation I am working with:
The annuitant on a trust owned contract passed away and her 3 sons are the trustees as well as the trust beneficiaries. They want to be able to defer taxes as long as possible. If I remember correctly the options for a non-spouse death benefit was 1) defer for 5 years and then lump sum 2) lump sum 3) some sort of annuitization. The agent said the current company (American Equity) would split the contract up into 3 contracts for each son and they will 1035x the contract to where ever they choose, as long as the other company would accept it. He also said that Safeco would be a company willing to accept the transfer but he doesn't like their EIA product
Sp I guess my questions are:
1) According to IRS regulations, can these even be done?
2) If so, do you know of any other companies that will accept this kind of transfer?
Thanks in advance for your help.
