Due to a recent death, a close friend is the beneficiary to two annuities. Before the money is distributed to her, she was asked what percentage (if any) of the funds does she want directly forwarded to the IRS and also to her local state taxes. Does anyone out there know what the "norm" is on something of this nature. She would rather pay the taxes upfront than be liable for them at tax time but isn't sure what the standard percentage should be. The insurance company said that they could not advise her.
Any help would be appreciated as she would like to resolve this matter asap. Thanks

ONLY RELATING TO THE I R S.

Please see IRS Publication 939, General Rule for Pensions and Annuities, for the details on how to calculate taxes due on annuity payments. As an illustration, assume you have a fixed annuity in which you've invested $100,000 that will pay you a sum of $750 per month for life starting at age 62. According to IRS life expectancy tables, you will receive those payments for 22.5 years, so your contract's value is $202,500 (12 X $750 X 22.5). Your exclusion ratio is 49.4% ($100,000/$202,500). Therefore, out of the $9,000 the annuity pays each year, you may exclude $4,446 from income. The remaining $4,554 of that payment will be subject to ordinary income taxes.

Relating to State Taxes:-

Depends on the actual state.

Please also refer to :- despenza.com