What happens if the trust runs out of money before the death of the Annuitant?
A. If not invested properly, it is possible that the Trust could run out of money. The Annuitant would have the right to sue the Trust for breach of the annuity contract. However, if the assets no longer exist in the Trust, there would be no advantage to taking legal action. Should this scenario occur, the IRS would be unable to receive its tax money considering no assets remain in the Trust.
