IRA Beneficiaries

Submitted by Roy Williams on Mon, 2009-09-14 16:06

Client has IRA in an index annuity. Her beneficiaries are: Her daughter at 20%; two grandchildren at 20% each; and 40% to a special needs trust for an adult son (an irrevocable discretionary trust written in 1995). Based on my attendance last week with Ed, I believe this trust may invalidate the stretch IRA for the other benficaries! Am I correct?



Submitted by Alan Spross on Tue, 2009-09-15 03:15

Yes, this is a very risky setup for the other beneficiaries. IRA should be split into two accounts with the SNT beneficiary of one account and the 3 designated beneficiaries on the other account.

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