PS: Is there some reason that this topic has no responses on this forum? I do not see other threads that go without a response. Seems to me to be a legitimate question about the use of a Roth. ????
I am trying to do a number of things with a Roth and our living trust with a pour over will.
Basically, I would like to use a Roth as a non-taxable source of living expenses income in place of a large checking account and/or a taxable brokerage account.
In addition, since a large amount of our estate is controlled by beneficiary law for retirement assets, I am struggling with how I can accumulate assets that a final trustee can use to pay final costs, taxes, the trustee's guaranteed fee, etc. The checking account, taxable brokerage account and the house are in the living trust's name. I don't want to force the final trustee to do "fire sales" in order to raise funds for final expenses.
Can I also use the Roth mentioned above that is used for living expenses as this final expenses pool? I was thinking that possibly I could name my spouse who is statistically likely to survive me as the one and only beneficiary of this Roth. Assuming that she doesn't mess that up when inheriting it by naming other beneficiaries, can I assume that this Roth will at her passing belong to the trust trustee and available for final expenses? And then would any excess Roth funds after all expenses belong to the trust and then be distributed to the trust beneficiaries (kids)?
Does this Roth approach work? Problems? A better way?
Thank you in advance for any advice, comments and suggestions.
PS: Would the Roth have to have a secondary beneficiary that is the living trust for this to work?