Transfer of IRA ownership to a Trust
I received a telephone call today whereby a child of a parent is attempting to reduce the parent’s asset base in order to qualify for veteran benefits assistance.
The parent has an IRA, custodied at a well known insurance company. It is in an annuity. A representative of the insurance company has advised the child that the parent can transfer ownership of the IRA to the trust.
I have never experienced this.
Can the ownership be changed and it still be inside of an IRA?
Respectfully,
Bernard A. Fagnani CPA/PFS
Permalink Submitted by Alan Spross on Wed, 2012-05-02 20:06
No, it cannot be changed to trust ownership. The only possible ownership change while the owner is living is a transfer incident to divorce where the ownership is transferred to the other spouse.
A trust can be the beneficiary of an IRA, but cannot own the IRA while the owner remains alive.
Perhaps the insurance company rep was thinking in terms of a non qualified annuity not held in an IRA account.