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What is the purpose of Form 90-1940?

Form 90-1940 is used to designate a new owner for a policy, covering different types of ownership transfers and succession ownership arrangements. Only one ownership option can be selected on this form, making it straightforward for policyholders to specify their preference. The form outlines various options, including naming the insured as the new owner, appointing individual owners, establishing trusts, or selecting corporations as owners.

What information is required when filling out Form 90-1940?

When completing Form 90-1940, you'll need to provide the new owner’s taxpayer identification number and, for individual owners, their date of birth and gender. This data ensures that the new owner's identity is verified and correctly documented. Additionally, you must select one of the available ownership options and provide details regarding the relationship between the new owner and the insured.

How should I submit Form 90-1940 once it is completed?

Once you have filled out and signed Form 90-1940, you have a couple of options for submission. You can mail it along with Form 15-1265 to Northwestern Mutual at their designated P.O. Box. Alternatively, you can fax both forms to their Home Office. Regardless of the method you choose, be sure to keep copies of all completed documents for your records.

Can I request a custom owner arrangement if none of the options fit my needs?

If the standard options on Form 90-1940 do not meet your requirements, you can request a custom owner arrangement. To do this, simply contact the Beneficiary & Title Division of the Policyowner Services Department at the provided phone number. They can help draft a suitable arrangement that aligns with your specific situation.

Are there any tax implications when naming a non-natural person as the new owner?

Yes, naming a non-natural person, such as a corporation or trust, as the new owner of a personal deferred annuity contract can have significant tax consequences. It’s essential to consult with an attorney or tax advisor before making such changes. This step will help ensure you fully understand any potential tax implications that may arise from transferring ownership to a non-natural entity.

Filling out the Owner Designation Form 90-1940 can be a straightforward process, but there are several common mistakes that can lead to complications. One significant error is not selecting only one ownership option from the available choices. This form offers five distinct options for naming a new owner, such as individual owners or trusts. It is crucial to select only one option. If multiple options are checked, it can lead to confusion and processing delays.

Another frequent mistake involves omitting essential information. Each new owner must provide a taxpayer identification number, which is typically a Social Security Number for individuals or an Employer Identification Number for entities. Additionally, date of birth and gender for individual owners are required. Missing this information can cause the form to be returned or delayed as the company may not be able to process the request without complete information.

People also often forget to include the necessary accompanying forms. Along with the Owner Designation Form, Form 15-1265 should be completed to confirm the new owner's address and billing information. Failing to submit this additional form can result in future correspondence being sent to an incorrect address or the wrong payer being billed, leading to further complications in managing the policy.

Lastly, there is a tendency to overlook the importance of signing and dating the form correctly. The new owner must sign the document using the appropriate signature block. If this step is neglected or performed incorrectly, the form may not be accepted, causing further delays in processing the ownership designation. Ensuring all signatures and dates are present will help facilitate a smoother transition of ownership.

When designating a new owner for a policy, several other forms and documents are often necessary to ensure a smooth transition and proper record-keeping. Below, you will find an overview of these commonly used documents. Each plays a crucial role in the owner designation process and helps maintain clear communication with the insurance provider.

• Form 15-1265: This form is used to request a new owner address and/or new payer information. It is important to fill this out in conjunction with the owner designation form to ensure that all future correspondence reaches the appropriate party.
• Form 90-1638: If the standard ownership options do not accommodate the specific needs of the policyholder, this form allows for a custom-drafted owner arrangement. It's useful when more complex ownership structures are required.
• Change of Beneficiary Form: This document is essential for updating or naming new beneficiaries after the new owner is designated. It ensures that the right individuals receive the benefits when the policy matures or in the event of the owner's death.
• Transfer of Ownership Form: When transferring ownership from one individual or entity to another, this form formally documents the change. It provides legal evidence of the transfer and is vital for the maintenance of rights associated with the policy.
• Trust Agreement: If the new owner is a trust, a copy of the trust agreement may be required. This document provides details on the trust's purpose, trustees, and their powers, ensuring that the insurance company recognizes the trust's validity.
• Payment Plan Election Form: If the new owner intends to set up payment plans for premiums or death benefits, this form outlines those choices. It is crucial for specifying how benefits are paid out and under what conditions.

Understanding these documents and forms is key to successfully managing the ownership and benefits of any policy. Always consult with a knowledgeable professional if you have any questions or need guidance on completing these forms accurately.

• Form 15-1265 - This form complements the Owner Designation Form by allowing for a request for new owner address and/or new payer information. Like Form 90-1940, it ensures that communications are sent to the correct parties.
• Form 90-1638 - This is an alternative owner designation form for situations not covered by Form 90-1940. Both forms facilitate the designation of ownership but differ in the ownership arrangements they accommodate.
• Beneficiary Designation Form - This form allows the owner to specify beneficiaries for a policy. Like the 90-1940 form, it requires the detailed identification of involved parties and their relationships to the insured.
• Transfer of Ownership Form - This document is used to formally transfer the ownership of a policy from one person or entity to another. Similar to Form 90-1940, it deals with changes in policy ownership, albeit typically under different circumstances.
• Trust Setup Form - This form is utilized to establish a trust that may serve as the owner of a policy. Both the trust setup and Form 90-1940 address ownership designations but focus on different structures for managing ownership.
• Change of Address Form - Like Form 15-1265, this document ensures that the correct contact information is on file. Both forms aim to maintain accurate records for effective communication regarding the policy.
• Power of Attorney Form - This form grants authority to another individual to act on behalf of the owner. While Form 90-1940 concerns owner designations, both involve the delegation of rights and responsibilities concerning policy management.
• Change of Payer Form - This form is used to update the payer information for a policy. Similar to the Owner Designation Form, it necessitates relevant details about the payer and their relationship to the policy owner or insured.

• Do read the entire form carefully before filling it out.
• Don't alter any language on the form; use it as provided.
• Do ensure only one ownership option is selected.
• Don't forget to include the new owner’s taxpayer identification number.
• Do provide the new owner’s date of birth and gender where applicable.
• Don't leave sections blank; fill out all required fields accurately.
• Do sign and date the form using the appropriate signature block.
• Don't send the form without making a copy for your records.
• Do call customer service if you have any questions during the process.
• Don't mail or fax the form without checking that all necessary documents are included.

• Misconception 1: The Form 90-1940 can be used for any type of policy.

Many people believe that the Form 90-1940 is applicable for all insurance types. In reality, this form is specifically designed for ownership changes, excluding Disability Income Policies. Users must refer to a different form, the Owner Designation Form 90-1638, if they wish to make ownership changes regarding Disability Income Policies.

• Misconception 2: You can select multiple ownership options on Form 90-1940.

Some individuals think they can choose several options at once to designate ownership. However, the form strictly allows only one ownership option to be selected at a time, ensuring clarity and preventing confusion about the ownership structure.

• Misconception 3: There are no significant tax implications when naming a non-natural person as an owner.

It’s easy to assume that all ownership transfers are straightforward. Nonetheless, naming a non-natural person, such as a corporation or trust, as the new owner of a personal deferred annuity contract can lead to substantial tax consequences. Consulting with an attorney or tax advisor is essential to avoid unexpected liabilities.

• Misconception 4: Mailing or faxing the completed form is optional.

People often overlook the importance of submitting the completed Form 90-1940 properly. Sending all pages of the form, including any necessary additional forms, to the specified address or fax number is crucial. This ensures that the ownership change is processed without delays or complications.

Understanding the 90 form is crucial when it comes to transferring or designating ownership. Here are some key takeaways about utilizing the Owner Designation Form 90-1940:

• Choose Wisely: Only one ownership option can be selected on the form. Options range from naming the Insured as the new Owner to identifying a trust or corporation.
• Tax Considerations: Be cautious when naming a non-natural person as the new Owner on personal deferred annuity contracts due to possible significant tax implications. Consulting with an attorney or tax advisor first is recommended.
• Accurate Information is Essential: Ensure to provide the new Owner’s taxpayer identification number, date of birth, and gender. Any inaccuracies may cause delays in processing.
• Follow Mailing Instructions: After completing the form, remember to date and sign it. It can be mailed or faxed to the specified address to ensure it is processed promptly.