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Tax Consequences of Ownership Changes
Types:
- Addition/deletion of joint owner
- Transfer to another individual or entity
- Assignment
Taxation:
- Earnings are subject to income tax at time of
transfer
- 10% penalty may apply
- Gift taxes may apply
Exceptions:
- Transfers between spouses
- Transfers incident to divorce
- Transfers between an individual and his/her grantor
trust
Mandatory Distribution upon Death of Owner
If Owner dies Prior to Annuitization:
Surviving owner (or beneficiary) must elect one
of the following:
- immediate lump sum
- complete withdrawal(s) within 5 years of death
- annuitization (over the life of the new owner)
to start within one year of deathIf spouse is sole
surviving owner (or beneficiary), spouse can also
elect to continue contractIf owner is a grantor
trust, death of grantor triggers mandatory distribution
Mandatory distribution applies to all contracts
issued after 1/18/85
If Owner Dies After Annuitization:
Payments continue to beneficiary, based on annuitant's
life and type of payment plan chosen
Feel free to contact us for a no
obligation, no cost analysis of your
investment portfolio. Our clients benefit
from our counsel and process of customized
service. We are not just selling a single investment
or idea. DeSpenza Capital Management, LLC is
proposing a serious investment process by which
you can manage you money for a lifetime. Please
contact us for a free Complimentary
Consultation to discuss diversification
opportunities for income, savings, and legacy.
This intro page gives you a brief synopsis
of each investment category of service we offer.
Complimentary
Consultation
877-337-7369
email: adespenza@despenza.com
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