A relative has several fixed indexed annuities held in a revocable trust. She does not plan on taking money from these, they're all there for the death benefit payout when she passes so the money is just accumulating over time. Im new to trusts and how they work. SHe has an estate attorney but Im just now learning about this stuff. She is well below the federal limits on estate tax exemptions, but she lives in PA which has a 4.5% inheritance tax if that maters.
Are there any unintended consequences of holding annuities in a revocable trust vs outside a trust?
Are there any benefits of holding these in a trust?
Also...if the grantor of the annuities dies, do the funds stay in the annuity? Or are the annuities liquidated and then the trustee distributes to the beneficiaries?
Thanks for any information!
Are there any unintended consequences of holding annuities in a revocable trust vs outside a trust?
Are there any benefits of holding these in a trust?
Also...if the grantor of the annuities dies, do the funds stay in the annuity? Or are the annuities liquidated and then the trustee distributes to the beneficiaries?
Thanks for any information!
Statistics: Posted by irasymn10 — Thu Oct 03, 2024 3:55 pm — Replies 4 — Views 147