Tuesday, January 28, 2014
Naming a trust as a beneficiary of your IRA isn’t a good idea. It can be complicated and have negative income tax consequences if done improperly. However, if you are still considering naming a trust as your IRA beneficiary, here are a few considerations:
- Do you have any good reasons for leaving IRA money to a trust?
- Be picky when choosing your trust adviser.
- Make sure the trust beneficiaries are actually people.
- Consider the benefits of a spousal rollover.
- Use separate trusts for multiple beneficiaries.
See Sheyna Steiner, Naming a Trust as Your IRA Beneficiary, Bankrate, Jan. 2, 2014.
Special thanks to M.D. Anderson (Accountant, AZCLDP, Realtor) for bringing this article to my attention.