Search Help


Enter one of more keywords to search. Use quotes for “exact phrase.” Note that '*' and '?' wildcards are supported.

When your search results appear, you can refine your search further: Sort for only results in which all search terms appear AND/OR sort by chronological order.

Article Date:
September 2013


Word Count:
879

 

 

Mom Dies: Daughter Inherits and Fixes Five Inferior Annuities


IRS private letter ruling 201330016 shows how an heir (who is not a surviving spouse) can use a Section 1035 tax-free exchange to upgrade her inherited annuities.1

 

The Inheritance

 

Mom invested in five annuity contracts of which four were fixed annuities issued by Able Company and one was a variable annuity issued by Baker Company. She named Sally, her daughter, as the beneficiary of the annuities.

 

Mom dies. Sally now owns the annuities. To avoid immediate taxation, she elects under Section 72(s)(2) to receive the distributions over her life expectancy.2 That’s ... Log in to view full article.

Log in to view full article
Already a subscriber?
 
Email Address

 
Password

Log In Send me my password

You'll be able to read the full article and get instant access to the last few issues of the Tax Reduction Letter

Not yet a subscriber?
 
with a money-back guarantee



 

SS