Trusts as IRA Beneficiaries

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.