Client and spouse have Traditional and Roth IRAs and updated their Wills. They created a SNT for the son, the daughter (not special needs) is the other contingent beneficiary. The client gave me this (below) from the attorney….

1. Is this acceptable language for a “conduit trust”?
2. Should the beneficiary of the parents IRA be “Special Needs Trust dated xx/xx/xxxx”?

RETIREMENT ACCOUNT BENEFICIARY DESIGNATION

Upon my death, my retirement account #______________________ (the “Account”)
hall be distributed to my spouse, John Smith, if my spouse shall survive me, or if not, to my
issue surviving me, per stirpes, provided, however, that if any portion of the Account shall
become payable to any of my issue for whom a trust is established under my Will, such
portion shall be distributed to the then Trustee(s) of such trust, to be added to the trust for
the benefit of such person, to be held, administered and distributed as an integral part
thereof.

* * * *

Notwithstanding anything hereunder to the contrary, if the Account (or any portion
thereof) becomes payable to the then Trustee(s) under my Will, then (i) upon the written
request of the Trustee(s) under my Will, any payments to be made to such Trustee(s) may be
accelerated or otherwise made at such times and in such amounts as permitted by law, and
(ii) distributions from the Account and from the trust established under my Will shall be
made in such manner as to comply with the regulations or other rules of the Treasury
Department or of the Internal Revenue Service that require distributions hereunder to be
made over a shorter period of time or in greater annual amounts as a condition for the
qualification of the Account under Section 408 of the Code, and in order to avoid any excise
or penalty tax imposed by the Code.

Dated: _____________________ ______________________________
Jane Smith