Who should be the trustee in a Private Annuity Trust?
A. Usually, the trustee is one of the Annuitant’s adult children. The adult child can be the trustee as well as the beneficiary. However, if the Annuitant does not have any children (or does not wish to use his/her children as the trustee), he/she may choose a relative, family friend or any type of professional trustee such as an attorney, accountant or financial planner to serve as the trustee. Neither the Annuitant nor his/her spouse can be the trustee of the trust. If the Annuitant would like the comfort of extra security, he/she may assign a co-trustee which may be a combination of family members or professionals, for example. No matter whom the Annuitant chooses as the trustee or co-trustee, the beneficiary has the ultimate decision whether to replace an individual(s) as trustee.
