Trusts under Secure Act
I read an article that said the SECURE Act allows conduit or discretionary trusts to be treated as “Eligible Designated Beneficiaries” if they are set up for a disabled or chronically ill person, but it’s unclear if trusts for other groups (minors, etc…) will be given the same treatment by the IRS. They said that further IRS guidance is needed on other trusts to ensure they will be treated as EDBs.
Thoughts on this?
Permalink Submitted by Alan - IRA critic on Wed, 2020-02-05 00:33
That’s pretty close, but I do not think there is any doubt about qualified trusts with sole beneficiaries who would otherwise be EDBs. The gray area is when there are multiple trust beneficiaries including both EDBs and non EDBs,
Permalink Submitted by Bruce Steiner on Sun, 2020-02-09 01:55
Trusts for disabled or chronically ill persons get the life expectancy stretch as long as there aren’t any current beneficiaries other than disabled or chronically ill persons.