TRUSTS IN AN IRA
During this past tax season we have had many inquiries as to how a Trust could be named beneficiary of an IRA. I have three questions: (1) Where can I find information about the issues involved in setting up the trust and pitfalls to watch out for? (2) Where could I find a sample trust agreement for this purpose. (3) Where can I find information about a see-through Trust.
Permalink Submitted by Alan Spross on Fri, 2012-04-20 20:02
RMD related information is discussed on p 36 of Pub 590, mostly the requirements for the trust to be qualified for look through treatment for beneficiary RMDs.
There are many possible reasons to name a trust as IRA beneficiary, and there are some cases where there is no benefit whatsoever. Here is an article about it by Bruce Steiner:
http://www.kkwc.com/docs/AR20041209132954.pdf