Naming the Will or Trust as an IRA/Roth beneficiary (Primary or Contingent)

Submitted by Wendy Mommaerts on Mon, 2018-09-10 16:14

1) What are your thoughts on clients naming their WILL or TRUST as their primary or contingent beneficiary?

2) Are there any special rules when RMD’s are involved when deceased owner was already taking RMDs (spouse deceased – multiple primary benes with no contingents)?

3) Are there any special rules when RMD’s are involved when deceased owner was already taking RMDs (spouse, primary with multiple contingents)?

4) Are there any special rules when RMD’s are involved when deceased owner’s age was prior to 70 1/2 (spouse deceased -multiple primary benes with no contingents)?

5) Are there any special rules when RMD’s are involved when deceased owner’s age was prior to 70 1/2 (spouse, primary with multiple contingents)?

6) What happens if the oldest beneficiary within the trust is older than the deceased?

7) Do you know of a reputable website for trusted information on this confusing topic?



Submitted by William Tuttle on Tue, 2018-09-11 16:32

 

  • 1. You should almost never fail to name a beneficiary or name your estate as benefciary of an IRA account. A properly constructed trust may be of benefit, but often are unecessary and sometimes counter-productive. A trust or estate lawyer should be contacted to determine if one is beneficial given the curcumstances.
  • 7. Probably the reason that no one has answered your post is it does not appear that you made any attempt at research. These are mostly basic issues easily located in IRS Publication 590-B and/or on irs.gov.

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