Leaving Inherited IRA to Trust

Hi:

I have a question. I just inherited an IRA and wanted to see about leaving the IRA (should I die) to a trust. Given the fact the IRA was inherited from my mother and I elected the stretch option based on my life expectancy, I assume that a trust can be the beneficiary of the account with little significant issue? I understand it would need to distribute the income to the beneficiaries to avoid significant taxation, however, my interest is in protecting the principal as much as possible from my beneficiaries creditors etc.



Yes, you could name a trust as your successor beneficiary, and that would protect them against creditors even though you personally will have no such protection unless you live in one of the handful of states that have statutes to protect inherited IRAs from creditors.

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