I receive an annuity that was created from a trust after my grandmother died. It is considered my inheritance, and it doesn’t incur interest. Do I claim or the trust?

If the annuity company issues the 1099 to the trust then the trust will have to file a tax return.  The trust can pass all of the income through to the heirs so the income just ends up on your personal return anyway.  The trust won't have to pay anything.

So basically this will be an extra paperwork hassle to get the same end result if the annuity company doesn't issue the 1099 directly to the heirs.  Whoever is trustee of the trust should contact the annuity company to have them adjust the 1099.

@sfretty2012