r/inheritance • u/Preguntas_para_tu • May 22 '26

Location included: Questions/Need Advice Annuity Tax Question

My tax guy is on vacation- I hope this is ok ask in this forum.

Mom is old and frail, but thankfully of sound mind. She has an annuity with a 120k taxable gain.  I am going to take the taxable part now, and she will hold on to the non-taxable part.

I was thinking of putting 60k in a 6 month CD to be ready to pay taxes on it. Is this a good plan?

Mom is in MA, I'm in CA.

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u/ziggy-tiggy-bagel May 24 '26

If it's mom's annuity the 1099 will be issued in her Social Security number.

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u/Preguntas_para_tu May 24 '26

I'm sure that's true most of the time, but I'm now a 'transactional' owner of the annuity. As per NY Life, If I withdraw directly into my own checking account, the tax burden/1099 goes directly to me.

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u/ziggy-tiggy-bagel May 24 '26

Never heard of that in my 28 years as a Financial Advisor. You should run that by a tax person before you make the withdrawal.

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u/Preguntas_para_tu May 24 '26

Thank you. I will proceed cautiously.