I get asked a lot if more than one type of investment can be placed in a Private Annuity Trust.
The answer is yes, if it is constructed properly. When the trust is built, a conversation should be had with the Trust Company and the Trust Advisor and the Legal Counsel, and financial counsel. A thorough analysis should be done as far as other assets, income needs, estate planning needs, timelines, etc.
At that time, the question should be raised as to whether to structure the trust to accept other properties in the future. These could be in the form of real estate, investments, collections, a business sale, etc.
This way, when other assets are sold in the future, another annuity contract can be established, and future income can be increased. Multiple trusts may be cumbersome and cost more over the long haul to set up, maintain and administer. If all can be done within the same trust, logistics are simplified greatly.
Careful planning is key as always. That and choosing knowledgeable professionals and an established Trust Company.
More information on choices is available in the "Interview with the Pros" resource.
Paula Straub
SaveGainsTax
askpaula@savegainstax.com
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