WORDING OF TRUST BENEFICIARY IN AN IRA | Ed Slott and Company, LLC

WORDING OF TRUST BENEFICIARY IN AN IRA

I recently received an IRA beneficiary form that the attorney prepared showing the trust as a primary beneficiary -60% and the owner son a 40% primary beneficiary.
I have two questions:

Is this wording correct----- Trustee of Bill Smith Living Trust dated October 1, 2018

Can the son participate in a stretch IRA of his share of this IRA or does he have to have a separate IRA with no trust beneficiary?

  • The more important issue is why the IRA owner wants to run 60% through a revocable trust instead of leaving the 60% to or in trust for the beneficiaries of the revocable trust.
  • What happens to the 40% if the son predeceases the IRA owner?
  • What is your connection to this?
  • Bruce Steiner
 

Find members of Ed Slott's Elite IRA Advisor GroupSM in your area.
We neither keep nor share your information entered on this form.
 

I agree to the terms and services:

You may review the terms and conditions here.