Using Trusts as a Designated Beneficiary of an IRA

Almost every estate planning client has some form of a retirement account, either a DBP, PSP, 401k, and/or an IRA. And in a lot of cases, it is the client's largest asset, other than the house.

Based on your facts, the client may want to control the distributions after his or her death, either because it is a second marriage and she or he does not want this asset paid outright to the surviving spouse who may then name unrelated third parties as subsequent beneficiaries—or the client is a single person with minor children and it is not prudent to name the children as direct beneficiaries because of their young age.

You have an "aha" moment and start thinking that the proceeds need to be paid into a trust BUT this sends a shudder down your spine—how do I do that?

The financial advisor keeps talking about how important it is to have a "Stretch IRA." Again you shudder—what is that?

Have no fear. We will walk you through the analysis and process and answer the above and the following questions:

• What is a Stretch IRA, do I need one and if so, and how do I get one?
• When must required minimum distributions (RMDs) begin?
• Over what period of time are RMDs paid?
• What is a Designated Beneficiary and do I have one?
• What is the difference between a see-through trust, a conduit trust and an accumulation trust and when do I use each one?
• Do I need to worry about remainder beneficiaries?
• What if I have a charity as a beneficiary?
• What do I do about the Roth IRA?

This program is co-sponsored by Golden Gate University.

This is an intermediate level course. Some estate planning experience is presumed.