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Is It Advisable to Designate the Trust as the Beneficiary of Your IRA?

(949) 474-8440 Many people fail to recognize that IRA’s are unique assets and while a Trust may be ideal for the majority of your estate, naming a Trust as the beneficiary of your IRA is not usually the most tax efficient move. If you have more than one trust beneficiary, a Multi-Generational IRA strategy will not work as well with a Trust as with a named Beneficiary. All of the beneficiaries will be stuck using the oldest trust beneficiary’s life expectancy for purposes of calculating Required Minimum Distributions. Why is this important? The incredible opportunity for the youngest trust beneficiaries to enjoy tax-deferred distributions over their longer individual life expectancy can be lost. Of course there are some special situations where a Trust will make sense. Be sure to have all the facts and seek advice from qualified advisors. For an IRA Beneficiary Evaluation and Review call our office at 949-474-8440. ... ( read more ) LEARN MORE ABOUT: IR...