What is the tax effect on someone gifting a non qualified annuity to child?  gifter is 70+ years old and child is 50+ years old.  Can this be done by adding a rider (child) to annunity then change annunity to payout phase by taking one payment.  Then change ownership to child.  The child would have lifetime income and only pay income taxes on the gain of each payment of the annunity.  Let me know.