Apologize for the length but naming Trust as IRA Beneficiary is tricky.

Single mother with large IRA, and large general, non-qualified assets. Two minor sons. Wants to leave everything (including IRA) to children in a revocable discretionary trust with her responsible brother as trustee. No more children will be born. Mother wants controls if she dies and knows brother as Trustee will make wise decisions and prevent squandering.

1. Mother creates Revocable Trust leaving everything to children in equal shares. Upon death, Trust assets divided into separate trusts for each Child. Trustee may make discretionary distributions at any age; Child to receive his or her share of Trust assets at 25 if responsible. If one Son is deceased with living Issue, per stirpes. If one Son is deceased without living Issue, to other Son or his Issue. If both Sons deceased and no Issue, all to her brother or his Issue.

2. Not sure it necessary under to have the Revocable Trust qualify as see through under subtruse strategy described below, but Trust will qualify just in case; IRA not to be used for debts; irrevocable on owner’s death; all beneficiaries of the subtrust are individuals ; Trustee directed to provide documentation; no charities.

3. Revocable Trust Also Has Separate Article Creating Child IRA Trusts
i. Creates accumulation subtrusts for each Child to receive IRA distributions to be administered as separate subtrusts;
ii. Trustee of the Revocable Trust is also the Trustee of the Child IRA Trusts.
iii. Allows Trustee to resign as Trustee of a Child IRA Trust and appoint the Child as the Successor Trustee if age 25 and responsible.

4. Mother signs IRA beneficiary designation form. Primary Beneficiary section states “See Attachment A.”
a. The attachment entitled “Attachment To Beneficiary Designation For Account No. 1111” states as follows:
i. S1 and S2 are my living Children.
ii. Upon my death,
1. 50% to the S1 IRA Trust as a separate share created under the Mother Revocable Trust dated XXX
2. 50%% to the S2 IRA Trust as a separate share created under the Mother Revocable Trust dated XXX
b. Each share created above shall be owned by the Trustee of the S1 and S2 IRA Trusts (each a “Separate Child IRA Trusts”) to be administered for the benefit of such Child pursuant to Article _____ of the Mother Revocable Trust dated XXX.
c. The Trustee of the Separate Child IRA Trust designated above shall have the right (with respect to the death benefits as to which that Separate Trust receives) to elect any method of payment available.
d. The assets of my IRA Account No. 1111 shall be segregated, effective as of my death, into two separate subaccounts, one for the share representing each Separate Child IRA Trust, so that all post-death investment net earnings, gains, and losses are determined separately for each subaccount. The Trustee of each Separate Child IRA Trust shall have the right to direct changes to investments held in such Separate Trust’s separate subaccount.
Dated and Signed by Owner.

The beneficiary form will name the brother (or his Issue if deceased) as the contingent beneficiary.

The following are my Conclusions regarding how this strategy works Under the SECURE Act and assumes death of Mother relatively soon:

1. Designating and creating a subtrust for each Child will allow the 10-year clock to begin running when each Child reaches 18 (assuming majority age of state).
2. If a Child suddenly becomes disabled or chronically ill prior to mother’s death, the start of the 10-year clock is delayed. [Assume regulations will further define when the start begins.]
4. No annual Required Minimum Distributions for Children. IRA Subtrusts may continue to grow tax deferred.
5. Trustee withdrawals are decided separately for each Child IRA Trust. Trustee may:
a. withdraw all of IRA share and distribute fully to a Child;
b. withdraw portions of IRA annually but not equally over 10 years but fully distribute before end of 10 years;
c. withhold all of the IRA share at end of 10 years and distribute fully then (even though delaying until the end of the 10th year may place Child in a higher tax bracket);
d. withdraw all from IRA at end of 10 years to avoid 50% penalty but accumulate some (or all) and pay higher trust tax rate on amounts not distributed to beneficiary.
6. Having IRA assets and non-IRA assets in the Revocable Trust allows the Trustee to mix and match distributions of each type of asset. For example, assuming relatively equal values of IRA and non-qualified assets, a Trustee may distribute portions of IRA each year (depending upon tax issues) and hold the non-IRA assets for control if needed beyond 10 years.
7. An additional, alternative strategy is to also name the Children individually as “first level” contingent beneficiaries and empower the Trustee to decline one or both Child IRA Trusts, allowing the shares to pass directly to one or both of the Children if the assets have declined, the Children are older responsible, and control is no longer needed at time of the owner’s death.