Stretch in a Trust
Does a spouse or child lose the ability to stretch an IRA if they put the IRA in a trust or name the trust as the beneficiary. I have a client whose lawyer is telling him to name this new trust the beneficiary of all his life insurance and his IRA and I am concerned about the IRA and the flexibility it has for the spouse?
Thanks
Permalink Submitted by Alan - IRA critic on Thu, 2016-10-20 16:07
If the trust meets the IRS definition of “qualified”, then the IRA can be stretched over the life expectancy of the oldest trust beneficiary. But for a surviving spouse the RMDs will be considerably higher because the Uniform table cannot be used.