Can A Trust Own An Annuity?

Shawn Plummer

CEO, The Annuity Expert

An annuity can be a great way for retirees to receive a steady income stream. However, there are some questions about whether or not a trust can own an annuity. This guide will explore the answer to that question and discuss the benefits of owning an annuity through a trust.

Can An Annuity Be Owned By A Trust?

An annuity is a financial product that provides a series of regular payments over a set period. Annuities can be used to generate income during retirement, and they may be funded through a lump sum payment or a series of smaller payments made over time.

One question that often arises when it comes to annuities is: can a trust own them? The short answer is: yes; a trust can own an annuity.

A trust is a legal arrangement in which a person (the grantor) transfers ownership of assets to another person (the trustee) to hold and manage for the benefit of a third party (the beneficiary). Trusts can be used for various purposes, including estate planning, asset protection, and tax planning.

If you want to use an annuity as part of your estate plan, you may be able to set up a trust to hold the annuity and manage it for the benefit of your beneficiaries. This can allow you to specify how the annuity is to be used and when the payments are to be made, as well as to designate a trusted person to manage the assets on behalf of your beneficiaries.

It’s important to note that there are different types of trusts, and the specific rules and requirements for setting up a trust to hold an annuity will depend on the type of trust you choose and the state in which you live. Additionally, annuities come with certain risks and potential drawbacks, such as surrender charges and the possibility of losing money if the underlying investments perform poorly.

Before setting up a trust to hold an annuity, it’s essential to carefully consider your financial goals and objectives, as well as the terms of the annuity. You may also want to speak with a financial advisor or an attorney for more information and guidance.

Can A Trust Own An Annuity

Next Steps

While there are some concerns about whether or not a trust can own an annuity, the benefits of doing so may outweigh any potential drawbacks. If you are interested in exploring this option further, please get in touch with us for a quote. We would be happy to discuss your specific situation and help you determine if owning an annuity through a trust is right for you.

Can A Trust Own An Annuity

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Shawn Plummer

CEO, The Annuity Expert

Shawn Plummer is a licensed financial professional, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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