Discussion:Annuity Transfer to Daughter

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Revision as of 17:51, 24 May 2007
Blrgcpa (Talk | contribs)
(Generally if an)
← Previous diff		 Revision as of 19:29, 24 May 2007
Mikelim (Talk | contribs)
(That's the thing)
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{{ForumReplyPost|UserID=Blrgcpa|Date=24 May 2007|Text=Generally if an annuity is transferred to another one it's tax free. I'm not certain if this applies because of the change in name.}} {{ForumReplyPost|UserID=Blrgcpa|Date=24 May 2007|Text=Generally if an annuity is transferred to another one it's tax free. I'm not certain if this applies because of the change in name.}}
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 +{{ForumReplyPost|UserID=Mikelim|Date=24 May 2007|Text=That's the thing - no money was taken out of the annuity; ownership was simply transferred to the wife and daughter. I know that it is a non-taxable event if the ownership transfers to the spouse, but this got complicated because of the daughter.}}

Revision as of 19:29, 24 May 2007

Discussion Forum Index --> Tax Questions --> Annuity Transfer to Daughter

Mikelim (talk|edits) said:

24 May 2007
Since I know nothing about annuities, I thought I'd throw this up here.

I had a possible new client come to me saying that they had transfered ownership of her father's annuity to her and her mother because her father was beginning to lose his faculties.

Her prior CPA assured her that this was not a taxable event, however, the annuity co treated this as a distribution.

Is there a way to correct this? Or was she simply given bad advice from her prior CPA?

Blrgcpa (talk|edits) said:

24 May 2007
If the money was taken out of the annuity, the income is taxable.

Blrgcpa (talk|edits) said:

24 May 2007
Generally if an annuity is transferred to another one it's tax free. I'm not certain if this applies because of the change in name.

Mikelim (talk|edits) said:

24 May 2007
That's the thing - no money was taken out of the annuity; ownership was simply transferred to the wife and daughter. I know that it is a non-taxable event if the ownership transfers to the spouse, but this got complicated because of the daughter.
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