Who bears the risk of making the annuity payments and what kind of guarantee do I have that payments will be made?
A. The trustee bears the risk of ensuring that the Annuitant receives his/her earnings from the assets sold through the Private Annuity Trust. The Private Annuity Trust is as secure as the investments used to fund the trust. For example, if the investments are made up of stocks, then the annuity payments are vulnerable to market fluctuations. Thus, the trustee is responsible for making prudent investment decisions for the Trust.
