How To Avoid Paying Taxes On Annuities? 
Deferred or single premium immediate annuity policies only delay taxes , they dont avoid taxes . Even artful tactics in ownership with trusts or split annuitant strategies ultimately pay taxes . You could give an annuity to a charity outright and you would n't pay taxes , but youd have no asset either . Annuities only stall the inevitable tax event . But they are advantages to deferring taxation and that is where the planning begins . 