Age: 60+ and in good health.*
Concern: Has deferred annuities not needed
for income purposes. Would like to tax-efficiently transfer these assets to heirs.
Suitable Assets: Deferred annuities with significant growth above the client’s cost basis.
Tax Status: The strategy works best when
the client is in a 30 percent or higher marginal tax bracket and is concerned about estate tax
Other: Client should have other assets to
satisfy annual income needs.
* Distributions from annuities prior to age 59 1/2 may result in a 10 percent penalty.