I have a will that provides my wife the ability to disclaim assets and place them in a Bypass Trust. I also have a separate Irrevocable Trust that now owns my life insurance and some stocks..

Both my wife and I are over 70 ½. I have 2 Roth IRA’s, an IRA, a 401 and a Brokerage Account in my name. Beneficiaries of these accounts are my wife and later our three children. We don’t need the income from these accounts, so for all intents they are for the inheritance of our children. Currently, too many assets are in my name and upon my death will result in Estate Taxes to the State of New Jersey and possibly to the IRS in 2011 and beyond.

To prevent estate taxes, I am considering transferring assets, that are in my name, namely the Roth’s, and/or the IRA and/or the Brokerage Account (or stocks or funds from them) to the Irrevocable Trust. Note that the Roth’s are 5 or more years of age.

Q1. Is this a sound approach?

Q2. Is it possible to change the ownership of the Roth, the IRA and the Brokerage to the Irrev Trust while leaving the beneficiaries as they are?

Q3. Or, should I change the beneficiaries from my wife and 3 children to the Irrev Trust?

Q4. With either option 2 or 3 what are the RMD implications on my wife and 3 children (ages 47, 46 and 41)?

Q5. Once a Roth or an IRA are in a Trust do they continue their tax free status?