On October 18, 2006, the Department of the Treasury issued new proposed regulations on private annuities1 which will affect most private annuities entered into after April 17, 2007 and some entered into after October 18, 2006.2 The proposed regulations will render the private annuity less attractive as an estate and business planning tool.3 Basically, the new rules specify that, in a private annuity setting, the transferor and transferee of property are left as if the transferor had sold the property for cash and used the proceeds to purchase an annuity contract.4 The established rule of deferring the gain on the property funding the private annuity over the transferor’s life expectancy5 would not be available.6



To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.