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How are there no Estate and Gift taxes incurred through a Private Annuity Trust?

April 26, 2017Annuity Estate gift incurred private taxes Trust

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How are there no Estate and Gift taxes incurred through a Private Annuity Trust?

1 Answer

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10 Posted

A. The assets are completely removed from the Annuitant’s taxable estate once transferred into and “sold” through the Private Annuity Trust. Because the transaction is considered a “sale” and not a “gift”, there are no gift taxes incurred.