Can I restrict IRA distributions after I die
If a client wants to restrict the beneficiaries from being able to spend all the IRA at one time etc do we first have to pay taxes on the entire amount before it can be placed inside a trust that allows these restrictions.
thanks in advance
Permalink Submitted by Alan Spross on Mon, 2008-05-12 20:03
No, not at all. Taxes are not due on IRA distributions until they are distributed to the trust, and tax deferral can be retained by making sure the trust qualifies for look through treatment. There are many approaches available that can be used to limit access to IRA principal. See attached link to article by Bruce Steiner on trusts as IRA beneficiaries:
http://www.kkwc.com/docs/AR20041209132954.pdf
Permalink Submitted by Mark Rowlette on Mon, 2008-05-12 20:05
Thanks Dude
Permalink Submitted by Janine Janine on Tue, 2008-05-13 20:42
[quote=”[email protected]“]No, not at all. Taxes are not due on IRA distributions until they are distributed to the trust, and tax deferral can be retained by making sure the trust qualifies for look through treatment. There are many approaches available that can be used to limit access to IRA principal. See attached link to article by Bruce Steiner on trusts as IRA beneficiaries:
http://www.kkwc.com/docs/AR20041209132954.pdf%5B/quote%5D
The link did not work for me. Did anyone else experience this problem?
Thank you.
Janine