Golfer68ParticipantStatus: PhysicianPosts: 68Joined: 02/08/2017
My Grandma is 94 and dying, it is sad for us, but not for her . . . she lived through the depression and doesn’t need/want to be here anymore
I am her closest relative and me and my wife make $450,000 per year and have one 2 year old daughter. She has other relatives that are close but not as close as me. She, nor my family need the money and we want to avoid taxes (she served in world war II and doesn’t feel she needs to give uncle sam much more) . . .
It is a “non-qualified” annuity with an “accumulated value” of 35k and a “surrender value” of 35k. What is our best option here? Name me as beneficiary? my daughter? family that is close and makes less?
Thank you!May 13, 2019 at 10:29 am MST #214284ENT DocParticipantStatus: PhysicianPosts: 3454Joined: 01/14/2017
What does she want to do?May 13, 2019 at 11:22 am MST #214306Golfer68ParticipantStatus: PhysicianPosts: 68Joined: 02/08/2017
she doesn’t want to deal with it and doesn’t want to pay taxes/fines, besides that doesn’t careMay 13, 2019 at 11:52 am MST #214315PedsParticipantStatus: PhysicianPosts: 4229Joined: 01/08/2016May 13, 2019 at 12:40 pm MST #214319ZZZParticipantStatus: SpousePosts: 665Joined: 06/18/2018
You say you don’t need the money.
So, I guess you have no mortgage, your kid has $1M in a college fund, and you and your wife just work for the fun of it, right?
If not all of those things are true, tell grandma thanks and be grateful for a small windfall. It’s got 0 gain, so no tax issues.May 13, 2019 at 2:07 pm MST #214337InsuranceproParticipantStatus: Financial Advisor, Insurance AgentPosts: 47Joined: 03/26/2019
We can’t tell what the gain is based on the info provided. If she doesn’t want to deal with it she should name you the beneficiary. You can’t avoid taxes if there is a gain but you can stretch them out. Based on the relatively small numbers you’d probably just want to take a lump sum.Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 487Joined: 06/12/2017
You will owe taxes on the gains, meaning on the value above her cost basis. However, if you don’t need the money and don’t want the tax bill, maybe a fitting tribute to grandma would be to donate the annuity to charity?
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
https://ProsperousPhysician.com | (717) 496-0900May 14, 2019 at 6:04 am MST #214431HankModeratorStatus: AttorneyPosts: 1322Joined: 03/27/2017
You will owe taxes on the gains, meaning on the value above her cost basis. However, if you don’t need the money and don’t want the tax bill, maybe a fitting tribute to grandma would be to donate the annuity to charity?Click to expand…
Wow, that really sounds like letting the tax tail wag the net income dog.May 14, 2019 at 8:51 am MST #214463