Attorney is suggesting to my 80 year old client that the $300,000 IRA’s he just inherited from his wife’s passing have the beneficiary changed from the charitable entities that have been in place for 25 years to his RLTrust so that the trustee can pay to the charitable entities in perpetuity. It’s my opinion that this method would create a taxable event in the trust’s tax bracket, therefore losing a significant amount of the IRA that would have gone directly to the named charities without any taxable event. It’s my opinion also this would allow the trustee to hold on to the remainder of the money for the purpose of charging fees to the assets also in perpetuity. This gentleman’s estate is made up of these IRA’s, a large tax deferred non-q annuity, life insurance, property, and cash he’s already been encouraged by the trustee to put into the RLT. I have no problem with what’s already in the trust or property if absolutely necessary, but the couple’s intention was to go to favorite charities of their choice all these years. The RLT attorney and bank trustee are pressing this issue about changing everything the man owns to be payable to the trust. Please confirm to me about the taxable event and it’s bracket for IRA and deferred annuity interest payable to the trust – to hold the assets and trickle payments annually in perpetuity.

Honestly, when I see something that just doesn’t feel right, and I’ve been a New York Life advisor and CLU, ChFC for 33 year, I believe I need my concerns confirmed and then speak to the client on behalf of honesty. Thank you. I await your reply.