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A couple of considerations. If you sell your funds now you will incurr capital gains taxes. And if you invest the proceeds in a variable annuity index fund any further appreciation will be taxed at the marginal rates of the beneficiaries upon her demise.

If you are comfortable with an index fund why not sell the Witter funds and buy Spydrs. This would allow her to withdraw funds as needed (by selling shares of SPDRS), while any capital gains in the account will receive a stepped up basis upon her death, reulting in no tax liability for the heirs.

My research found Vanguard 500 Index fund to be a good choice if you decide to go that way. I personally rolled some fixed income annuities into it and have been satisfied with the results. For the reasons stated above present and future investments will be in SPDRS.

Just my thoughts on the subject. Hope they help.

Guyb

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