How to Move Fixed Annuities to a Trust

It's never too early to begin saving toward retirement. The sooner you start saving, the more time your money has to grow. A fixed annuity is a reliable source of income guaranteed by an insurance company for a specified term. You invest money and the insurance company pays a set interest rate on the principal. Moving your annuity into a trust allows you to designate which assets go to your named beneficiaries. A trust is also used to reduce income taxes, avoid probate, shield assets from creditors, and minimize estate taxes.

Contact the insurance company issuing your annuity. When you place assets in a trust, the trust becomes the owner. Explain your intent and request the necessary form to change ownership. The form is typically called an Annuity Contract Change Request.

Complete the paperwork. You will need to provide the existing information, including the annuity contract number, current annuity owner name and contact information.

Select "Ownership Change" as the type of change you are making. Some insurance companies will require you to update the beneficiaries as well when changing ownership of an annuity.

Name the trust as the new owner. List the trust's tax identification number as the new taxpayer identification number instead of your Social Security number

Sign the form and submit it to the insurance company, along with a copy of your trust document.


About the Author

Jeannine Mancini, a Florida native, has been writing business and personal finance articles since 2003. Her articles have been published in the Florida Today and Orlando Sentinel. She earned a Bachelor of Science in Interdisciplinary Studies from the University of Central Florida.