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-4900 800-494-2218 Rick KCTr ustlaw.com www.KCTr ustlaw.com THE CHOICE OF A LAWYER IS AN IMPORTANT DECISION AND SHOULD NOT BE BASED SOLELY UPON ADVERTISEMENTS IRA PROTECTION TRUSTS IRA Protection Trusts Often parents leave their tax deferred retirement accounts to their children outright - free from trust. In other words, they name their children as direct beneficiaries of these accounts. This traditional method of dealing with retirement account may result in some unintended consequ.

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An IRA Trust is a trust that one sets up (the “Grantor”) during lifetime to be the named beneficiary of retirement accounts. Because the trust is simply named as the beneficiary, the trust would not be funded with any other assets until the Grantor's passing.

Accumulation trusts This is where the trustees can accumulate income within the trust and add it to the trust's capital. They may also be able to pay income out, as with discretionary trusts.

A trust can be named as an IRA beneficiary if it meets the requirements for a “see through” trust as outlined in Treasury Regulation 1.401(a)(9)-4. Namely, that: It is valid under the laws of the state in which it is domiciled. The trust is irrevocable or becomes irrevocable upon the death of the original IRA owner.

Accumulation trust is a type of see-through trust that allows withdrawals to be made or kept within the trust. See-through trusts are established by people with individual retirement accounts (IRA) so that the assets in their IRAs are transferred into a trust should they die before withdrawing all of the assets.

To be a valid Accumulation Trust, (a) the trust must be a valid trust under state law, (b) the trust must be irrevocable, (c) the beneficiaries must be identifiable and (d) certain documentation must be provided to the plan administrator.

Accumulation trusts differ from conduit trusts in that they provide the trustee with discretion in determining whether to pay out or retain any distributions taken from the inherited IRA. This flexibility allows for assets to remain in trust protected from any outside creditors.

Requirements to Name a Trust as an IRA Beneficiary There are several requirements to designate a trust as the beneficiary of your IRA. It must be a valid trust under state law. The trust must be irrevocable (or will become so upon your death). The trust's beneficiaries must be individuals.

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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232