Conduit Trusts combined with CRUTs

Is it possible have an IRA pass to a conduit trust when the owner dies that then passes income to the beneficiaries annually (to take advantage of low tax brackets), but pays the remaining corpus to a CRUT in the tenth year? Could this effectively reproduce the stretch IRA (with a few wrinkles, of course)?



  • Chris Hoyt (professor at the University of Missouri Kansas City law school, and my colleague on the editorial advisory board of Trusts & Estates magazine for many years)  has suggested that if the IRA owner dies before his/her required beginning date the trustees of the charitable remainder trust could defer taking the IRA for 5 years, or if the IRA owner died after his/her required beginning date the trustees could take distributions over the IRA owner’s remaining life expectancy as if he/she hadn’t died.
  • If this is correct, the trustees would still have to determine whether this deferral outweighs the loss of the annual distributions to the noncharitable beneficiary during the deferral period.
  • Bruce Steiner

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