trust beneficiary
Recently acquired married client with 3 grown children who has IRA primary beneficiary as ” The Trustee named in my last will and testament” –No other beneficiaries. The will mentions the A & B trust but nothing specific about setting up a trust for the retirement assets. Client wants retirement dollars in a trust. Do I just count on the attorney’s handling this properly? What happens to the stretch option?
Is there a better way?
Permalink Submitted by Bruce Steiner on Mon, 2010-10-11 21:32
There are two issues: what the current plan is, and what the plan should be.
From the facts presented, it’s not clear whether trust A or trust B is the beneficiary. If the client intends for trust A to be the beneficiary, he/she should name trust A as the beneficiary. If the client intends for trust B to be the beneficiary, he/she should name trust B as the beneficiary.
Is there some reason not to have the spouse as the primary beneficiary, with either the credit shelter trust or the children or trusts for the benefit of the children as contingent beneficiary(ies)?
The better way would be for the client to consult with an attorney familiar with this area.
Bruce Steiner, attorney
NYC
also admitted in NJ and FL