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.

Step 1

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.

Step 2

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

Step 3

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.

Step 4

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

Step 5

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

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