Trusts as Beneficiaries of IRAS

9:45 AM - 10:45 AM

As the use of trusts in estate planning becomes more popular, and clients continue to accumulate more assets in retirement accounts, the use of trusts as beneficiaries of IRAs is increasingly desirable and necessary. Unfortunately, he rules pertaining to IRAs payable to a trust after death are complex and challenging. Explore the unique requirements for IRAs to preserve and maximize their tax deferral after death when a trust is the beneficiary, with details about the rules for trusts to qualify for the IRA’s post-death tax deferral “stretch,” how to calculate the actual post-death required minimum distributions for the trust, and examples of specific wording from sample trusts.

Learning Objectives:

  • Describe the post-death IRA distribution requirements and options based upon the type of designated (or non-designated) beneficiary
  • Identify the four requirements necessary for trusts to qualify as designated beneficiaries
  • Explain the tax consequences of trusts receiving RMDs, as well as when the trust distributes income to beneficiaries of the trust
  • Be able to determine the applicable distribution period for the RMDs
  • Compare and contrast the income treatment within conduit and accumulation trusts.

Session Content Level: Advanced