Change of Ownership Tax Consequences

seanfitz · 07-27-2009, 12:58 PM

Can anyone confirm the tax consequences to a change of ownership for a non-qualified annuity contract between spouses? I believe it to be a non-taxable event. Please help...

insuranceexec · 07-28-2009, 12:24 AM

May I ask why you are changing the ownership?

Assuming all things are "normal;" then yes, there are no tax consequences.

seanfitz · 07-28-2009, 10:17 AM

Thank you for your response. We are working with my client's attorney to equal out some of the assets for estate planning purposes. MetLife is saying it would be a taxable event?? Not sure why, the contract was issued after 1987 and should not be a taxable consequence. I was looking for confirm.
Thanks.
Fitz

insuranceexec · 07-28-2009, 11:34 AM

Originally Posted by seanfitz

Thank you for your response. We are working with my client's attorney to equal out some of the assets for estate planning purposes. MetLife is saying it would be a taxable event?? Not sure why, the contract was issued after 1987 and should not be a taxable consequence. I was looking for confirm.
Thanks.
Fitz

The company has to be willing to transfer the cost basis. Maybe some companies will not.

Let me know how it goes.