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Apr 8, 2020 by |

San Francisco Annuity and Financial Elder Abuse Attorneys: Annuities Can Cause Estate Planning Problems

ATTORNEY NEWSLETTER

Dangers of Annuities in Trusts

Avoiding Taxable Events

Our annuity and financial elder abuse attorneys recommend against annuities for seniors in particular, because commissions, fees and surrender penalties reduce returns and make it expensive to get your money out if you need it.  Our litigators also understand the complications annuities can cause to your estate plan; surrenders, replacements, or transfers of annuities in and out of trusts may for example create a taxable event for you or your beneficiaries.  If you’re over 60 and live in California and have suffered a loss due to cancellation, replacement, full or partial surrender, or high fees on any type of annuity, call the California financial elder abuse and annuity attorneys at Evans Law Firm, Inc. today at 415-441-8669 or toll free at 1-888-50EVANS (888-503-8267) for a free review of your policy. A list of major carriers in California appears below.

Always consult your tax advisor before committing to any annuity transaction. An insurance agent may try and convince you to replace an existing annuity with a new one, or fund a new or existing living trust with an annuity, or transfer a qualified annuity (purchased with pre-tax dollars) into a trust and out of your individual name.  Each of these transactions may constitute a taxable event, and the tax will be calculated at ordinary income tax rates, not preferred capital gains rates.  The bottom line is that any annuity transaction can result in a big tax bill that would wipe out any gains you may have earned on your money – and more.

Whatever you do, get second opinions from a professional investment advisor with nothing to gain from a sale or the addition of an annuity to your retirement plan. Whether it’s a banker, insurance agent, or financial advisor recommending an annuity to you, also always consult your tax advisor before any purchase or surrender. Finally, if you have an annuity in a trust make sure the beneficiary designations in the annuity track the trust beneficiary provisions. While the trust may own the annuity, the designated beneficiaries under the annuity contract will determine who ends up with the money on your death.

Contact Us

If you or a loved one has suffered loss on an annuity in California, contact San Francisco and California annuity and financial elder abuse attorney Ingrid M. Evans and the other attorneys at Evans Law Firm at (415) 441-8669, or toll free at 1-888-50EVANS (888-503-8267) or by email at <a href=”mailto:info@evanslaw.com”>info@evanslaw.com</a>. Our attorneys have experience with complex financial contracts and large insurance companies.  We can help guide your case through a jury trial or toward an equitable settlement.  We handle cases involving physical and financial elder abuse, qui tam and whistleblower law, nursing home abuse, whole life insurance and universal life insurance, and indexed, variable, and fixed annuities.

Annuities and life insurance produce large sales commissions for brokers but are often inappropriate products for consumers, especially seniors. Leading providers and distributors of life insurance and fixed, variable and fixed indexed deferred annuities in California are listed below.  We are not in any way suggesting that any of these carriers or distributors has done anything wrong.  Rather, the list is provided solely as a reference for our readers.

AIG/American General Life Insurance Company

Allianz Life Insurance Company of North America

American Equity Investment Life Insurance Company

American General Life Insurance Company/AIG

American International Group, Inc. (AIG)

American National Life Insurance Company

Athene Annuity & Life Assurance Company

Athene Annuity and Life Company

Athene USA

Aviva Life Insurance Company

AXA Equitable Financial Services, LLC

AXA Equitable Life Insurance Company/AXA US

AXA Advisors, LLC

Brighthouse Financial, Inc./MetLife

EquiTrust Life Insurance Company

Fidelity & Guaranty Life Insurance Company

Genworth Financial, Inc.

Genworth Life and Annuity Insurance Company

Genworth Life Insurance Company

Guggenheim Partners, LLC

Guggenheim Partners/Security Benefit Life Insurance Company

ING USA Annuity and Life Insurance Company

Jackson National Life Insurance Company

John Hancock Life Insurance Company

Lincoln Benefit Life Company

Lincoln Financial Group

Massachusetts Mutual Life Insurance Company

Metlife/Metropolitan Life Insurance Company/Brighthouse Financial, Inc.

Minnesota Life Insurance Company

Nationwide Investor Services Corporation (NISC)

Nationwide Life and Annuity Insurance Company

Nationwide Life Insurance Company

New York Life Insurance Company

Northwestern Mutual Investment Services, LLC

Northwestern Mutual Life Insurance Company

Northwestern Mutual Wealth Management Company

Pacific Life & Annuity Company

Pacific Life Insurance Company

PacLife

Security Benefit Corporation

Security Benefit Group, Inc.

Security Benefit Life Insurance Company/Guggenheim Partners

Security Investors, LLC

Security of Denver Life Insurance Company/Voya

Transamerica Life Insurance Company

Voya Financial Advisors

Voya/Reliastar Life Insurance Company

World Financial Group Insurance Agency, Inc.

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