Owned by a Trust?

[Glad2bHere]

Hi, Folks:

I just attended my first Feldman Forum with NYL and can heartily recommend it if you ever have a chance to go. This one was completely on the nature and use of Trusts and I was fine until the guy came on and started singing the praises of putting annuities in a Trust.

First off, let me say that AFAIC a grantor can put anything under trust ownership that they care to. However, if the Trust has no annuities and the grantor wants to consider buying an annuity and owning it under a Trust I think I have a problem with that. Which is why I am starting this thread.

Given the protective nature of Trusts, I'm not sure I could recommend an instrument that might introduce the potential for a taxable event or for the payments of even declining back-end loads.

What especially raised my ire was the report by the presenter that one ought approach the Trustee and get THEM to purchase the annuity---or risk missing an "opportunity". As far as I was taught a trustee has an almost "sacred" obligation to support the best intrests and intentions of the grantor, yes?

Given that my experience is rather dated, I'm thinking that maybe I might be operating under out-dated information or conclusions. I would very much like feedback from folks who currently sell both Fixed and Variable Annuities as to the appropriateness of selling an annuity to a Trust(ee) as an appropriate investment. Thoughts?


Best Wishes,

Bruce

 

[BNTRS]

What's the situation. Simply putting an annuity in a trust for the sake of putting it in a trust doesn't make a lot of sense. But there are a lot of reasons planning wise where a trust might make sense. Context is crucial.

 

[moonlightandmargaritas]

Simply putting an annuity in a trust for the sake of putting it in a trust doesn't make a lot of sense.

Except for the attorney that's charging $3,500 to draft it from a boilerplate...

 

[Glad2bHere]

In the case of the fella doing the presentation, the only conclusion that I was left with was that approaching the Trustee for the Trust presented a golden opportunity to sell that Trustee a product. I heard no advantages given for using this particular instrument. I DO remember some vague allusion to considering possible tax implications but apparently that was something to be delegated to a CPA.

I'm still chewing on this.

Best Wishes,

Bruce

 

[DHK]

Bruce,

This question doesn't matter for you right now. It doesn't matter until you have a prospect and an open case.

Get your pipeline filled, get your calendar filled... then you can ask all the advanced questions that will actually help you get PAID.

 

[abacusadvisors]

There are potential uses for an annuity inside a trust. The new FIA's / VA's often have income guarantee's, death benefit guarantee's or both which would be advantageous to both the grantor and provide potential protection for the trustee. I agree with other posts that it does depend on the client situation. There is no blanket statement that it is good for the client or bad for the client but certainly depends on the goals and plans the client has for the asset. It can certainly be used as a PLANNING tool but should never be used as a MARKETING tool.

 

[iceco1d]

Elaborate on how an income guarantee or an enhanced death benefit on an annuity could help protect the TRUSTEE.

 

[scagnt83]

Elaborate on how an income guarantee or an enhanced death benefit on an annuity could help protect the TRUSTEE.

If a trustee's directive was to provide an income stream for life for a beneficiary or a certain DB then it could provide some fiduciary protection for them...

But obviously the soon to be spammer meant beneficiary ... lol

 

[iceco1d]

If a trustee's directive was to provide an income stream for life for a beneficiary or a certain DB then it could provide some fiduciary protection for them...

But obviously the soon to be spammer meant beneficiary ... lol

Damn it. That's a good point. We are supposed to be on the same side on this one though!

 

[scagnt83]

Damn it. That's a good point. We are supposed to be on the same side on this one though!

Yeah I know... couldnt help myself though... I had a discussion with a lawyer about that very thing earlier in the week.

But hey, I helped you call out the spammer and his ignorance at the same time!
Anyone who knows anything about trusts knew he was off base with what he meant... even an *** can mistakenly be right once in a while... (they just dont know it!!!! lol )