I have a similar situation with an annuity that was opened in the name of the trust. After my father passed the trust states to split the funds in to three equal parts to the children. The annuity company states if I do not withhold any taxes they would send a 1099R at the end of the year to the estate. So would the estate pay the taxes because of the 1099R or would it be up to each beneficiary to pay their share of the taxes. The claim form asks if I want to withhold a percentage of funds for federal and state taxes or withhold nothing. Do not want to pay taxes twice of the funds--one for the estate and one for the beneficiary. Which way is better?
