What is a private annuity trust?

A private annuity trust is a type of trust that is used to transfer assets from one person to another. It is typically used when a person wants to transfer a large sum of money or other assets to another person in a way that is tax-effective and that keeps the asset owner in control of the asset. When someone creates a private annuity trust, they transfer the asset to the trust and the trustee is given the legal title to the asset. The trustee then transfers the asset to the beneficiary in the form of an annuity, which is a cash payment made on a regular basis. The beneficiary receives the annuity for a period of time, which is specified in the trust document, and then the asset is returned to the grantor. In West Virginia, there are certain legal requirements that must be met when creating a private annuity trust. The trust must be in writing and it must be recorded in the county court where the grantor resides. The trust must also include a provision that states when the annuity payments will begin and how long they will continue. Overall, a private annuity trust is a useful tool when it comes to protecting and transferring assets. It allows the grantor to transfer large sums of money while retaining control of the assets and it also provides a tax-effective way of transferring the assets. It is important to meet the legal requirements in West Virginia when creating a private annuity trust to ensure that the trust is valid and enforceable.

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