Owning Deferred Annuities in Trusts and Preserving Tax-Deferral Treatment
May 5, 2014
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By Michael Kitces, MSFS, MTAX, CFP, CLU, ChFC
Holding deferred annuities within trusts and preserving favorable tax treatment can be complicated. Be especially cautious about the pitfalls of transfers into and out of trusts, which can result in immediate recognition or continued deferral of the gains depending on the type of trust and its beneficiaries.