pros and cons of IRA designating TRUST as beneficiary. what happens to spouse does she need to waive first?
best solution for IRA beneficiary designation and tax implications if IRREVOCABLE TRUST IS NAMED.Who will make decision once primary owner dies
Permalink Submitted by William Tuttle on Wed, 2021-12-22 18:32
What is the specific reason that justifies the complexity of naming a trust the beneficiary. While there can be specific estate and spousal protection reasons. In many cases, a trust is not necessary or beneficial for inherited retiremnt accounts.
Permalink Submitted by gautam shah on Thu, 2021-12-23 01:46
thank you. clarification on my part i have IRA more than 3 million if i or my wife who will own survive another 20 years it will multiply and estate tax and income tax will eat away most. my children are well off so plan to give money in some form to grandkids and they will be in early 20 to 30 by that time. any suggetion and guidance will be much appreciated.
Permalink Submitted by Bruce Steiner on Sun, 2021-12-26 17:34
If IRA benefits are payable to trusts, the trustees decide on investments and distributions (assuming, as should usually be the case, that the trust doesn’t mandate or limit distributions).
If you leave your IRA to your wife, and don’t use your entire estate tax exclusion amount (presently $11.7 million), and your executors elect portability (which presumably they would do), she’ll get the benefit of your unused estate tax exclusion amount, in addition to her own. However, while her own exclusion amount will be indexed for inflation, your unused exclusion amount won’t be indexed for inflation.