Trust Beneficary for Trad IRA
Hi. Can a Trust be added as a Beneficary in a Trad IRA? Will the IRA follow the rules of the Trsut in the event of death of the account holder? Are there any important considerations? Thanks.
Hi. Can a Trust be added as a Beneficary in a Trad IRA? Will the IRA follow the rules of the Trsut in the event of death of the account holder? Are there any important considerations? Thanks.
Permalink Submitted by Bruce Steiner on Tue, 2014-09-23 16:04
See my article on this subject in the March 2004 issue of BNA Tax Management’s Estates, Gifts & Trusts Journal: http://www.kkwc.com/docs/AR20041209132954.pdf.
Permalink Submitted by mk foss on Fri, 2014-09-26 21:15
There are some good reasons for naming a trust as the beneficiary of a traditionsl IRA and some reasons that it doesn’t make sense. Options are more flexible if you name individuals but if you’re worried about a spendthrift beneficiary, a spouse beneficiary naming children of a prior marriage instead of YOUR children as beneficiaries or possible bankruptcy of the individual beneficiary, then you should look into the use of a trust.