Under my living trust, there are separate conduit Retirement Plan trusts for each of my two children. Since these IRA trusts are conduit trusts, will the life expectancy option (stretch) for each child be maintained even with the following wording regarding beneficiaries, after the passing of each child?
A)My child (named) may, pursuant to a General Power of Appointment exercised in his last will, provide for the trust to pass to any person or entity, including his creditors and the creditors of his estate. If the General Power of Appointment is not exercised, then distribution shall be:
B)To his then living descendents, per stirpes. If no descendents, then to his brother (named), per stirpes. If no brother and his descendents are not living, then ½ to husband’s heirs at law and ½ to wife’s heirs at law.
Thank you for your help.