You can transfer practically any asset into your annuity, including cash, stocks, bonds, precious metals, a business, vehicles, notes, or other receivables. Once these assets are deferred on the income or capital increase of the assets as long as they remain in the annuity.
QUESTIONS ABOUT USING ASSET EXCHANGE TO OBTAIN AN ANNUITY
It is possible to structure a transfer of assets into the annuity so that the excise tax is legal. This is a tax-free exchange of the assets for the annuity.
Properly structured there is no capital gains tax on the exchange of appreciated assets for the annuity. Once in the annuity, the asset can, if so desire, be immediately sold through the annuity, again incurring no capital gains tax.
If the annuity is owned by an offshore insurance trust, upon your death the annuity is extinguished and the proceeds become the property of the trust. These proceeds are then distributed by the Trustee to the beneficiary(s) of the trust according to your instructions as set out in the trust deed, thereby avoiding probate and estate taxation.
Ultimately, you do. You do so by: (1) ensuring that the independent investment advisor you choose to manage your account is someone who shares your investment philosophy, and/or (2) investing in funds that you yourself choose.
Within certain constraints established by U.S. law, loans may be made to you, your nominee or your trust from the investment portion of your annuity on very favorable terms.
It is extremely difficult for creditors or other claimants to attach the assets of an offshore annuity. It is, for all practical purposes, impossible for them to do so if the annuity is held by a trust in an asset protection jurisdiction such as Belize.