Trusteed IRA
I heard Natalie speak on Friday. She mentioned a “Trusteed IRA”, in which you could set trust parameters whithin the IRA bene form, such as “Death RMDs to my spouse for her lifetime, balance to my lawful children then living”, without using a trust. Has anyone heard of these? She did mention it might be tough to get a custodian to accept.
Permalink Submitted by Bruce Steiner on Mon, 2007-10-15 21:13
The term “trusteed IRA” is commonly used to describe an IRA agreement that combines both the IRA provisions and the trust provisions into a single document. A few financial institutions have come up with their own forms, which tend not to be very good. If you want to have a trust as beneficiary, just create a trust that complies with the requirements and name it as beneficiary.
Before the temporary regulations came out in 1987, it wasn’t clear whether a trust could be a beneficiary. Back then, it was common in qualified plans (where there was already a plan trustee in place who was responsible for the investments) for the beneficiary designation to provide the terms for making periodic distributions. That was somewhat analogous to a trust.
Permalink Submitted by Alan Spross on Tue, 2007-10-16 01:00
Merrill Lynch has been the lead proponent of these vehicles. See link:
http://askmerrill.ml.com/publish/marketing_centers/products/ret008_Trust…