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IMPROPERLY MAKING THE TRUST THE BENEFICIARY OF THE RETIREMENT PLAN

Problem:

Beneficiaries are financially capable and mature, or the living trust has not been updated or properly worded to allow for a “see thru” Trust.  Pensions and IRA would distribute either immediately in lump sums or over 5 years periods causing unnecessary taxes and use of trust assets.

Solutions:

Updates and reviews of beneficiary designations

Comparison of pension allocation to estate allocation plan for adjustments

Be aware of the “see-thru” trust rules to allow for Stretching IRAs and effectively argue current law with reticent pension custodians.

Multiple IRAs to specifically allocate funding for individuals