[WSBAPT] IRA trusts

[Marcus Fry]

Jenna:
You need to make sure you name the subtrusts of the Revocable Living Trust as 2nd beneficiary.  Not the RLT as the 2nd beneficiary.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
Adoption Attorney*
P.O. Box 1689
Yakima, Washington  98907
Telephone:  (509) 248-7220
Facsimile:  (509) 575-1883

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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John Creahan
Sent: Friday, September 11, 2015 2:37 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] IRA trusts

Hi Jenna,
Good question. In my earlier response I assumed the children were adults. If the children are still minors, and the parents’ plan calls for a testamentary trust to be funded if both pass away, the parents would typically name that trust as their retirement account alternate beneficiary.
However, if the IRA assets will be needed for the beneficiaries’ living expenses or if the retirement accounts were relatively small, I would not necessarily recommend including provisions that would allow the trust to be treated as a designated beneficiary – that is, as a conduit or accumulation trust.
I don’t see the benefit of complicating the trust to allow a stretch that will probably not be utilized in any case.
Thanks,
John

John Creahan
Cairn Law, PLLC
206-621-5848<tel:206-621-5848>

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jenna Brozik
Sent: Friday, September 11, 2015 11:31 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] IRA trusts

John,

If their children are age 3 and age 5, do you still recommend naming their children as the account's alternate beneficiary rather than the trust?

Thanks everyone for all your comments.  They were very helpful.

Jenna Brozik
Attorney at Law
Prinz & Brozik PLLC
445 S Grand Ave
Pullman, WA 99163
(509)338-0908 / (509) 338-3527 (fax)
jennaprinzlaw at gmail.com<mailto:jennaprinzlaw at gmail.com>


On Fri, Sep 11, 2015 at 10:10 AM, John Creahan <john at cairn-law.com<mailto:john at cairn-law.com>> wrote:
There is no clear line between situations where you need a separate trust and those where you don't. More often than not, I include conduit trust language in the testamentary trust rather than a stand-alone.
I would probably use a stand-alone where the trusts' beneficiaries were not identical, for instance, or in cases in which the clients wanted dramatically different distribution schemes for their IRAs than for other assets.
This assumes a trust is beneficial. Depending on ages and account size, I often recommend that clients name their children as the account's alternate beneficiary rather than a trust.
Hope this helps,
John


John Creahan
Cairn Law, PLLC
206-621-5848<tel:206-621-5848>
Sent from my phone
________________________________
From: Mike Winslow<mailto:mike at winslegal.com>
Sent: ‎9/‎11/‎2015 9:50 AM
To: 'WSBA Probate & Trust Listserv'<mailto:wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] IRA trusts
This is a complex area of tax law. I have used Judd Marten to advise on these provisions. He teaches on the subject matter.

Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321<tel:360-336-3321>
Em. Mike at winslegal.com<mailto:Mike at winslegal.com>

This message is from an attorney, so it’s confidential. If you are not the intended recipient, it’s too late to stop reading this message, but you may not use it for any improper purpose. Huge Disclaimer available upon request.

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>] On Behalf Of Jenna Brozik
Sent: Friday, September 11, 2015 9:16 AM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] IRA trusts

Hello list mates,

I have a married couple who are clients and they have several IRAs in their own names.  I have already done a living trust for them.  I had planned to list the living trust as the secondary beneficiaries of the IRAs.  Do you think it is necessary to do a separate IRA trust and list this separate IRA trust as the secondary beneficiary of the IRAs?

Thanks in advance for any comments or suggestions.


Jenna Brozik
Attorney at Law
Prinz & Brozik PLLC
445 S Grand Ave
Pullman, WA 99163
(509)338-0908<tel:%28509%29338-0908> / (509) 338-3527<tel:%28509%29%20338-3527> (fax)
jennaprinzlaw at gmail.com<mailto:jennaprinzlaw at gmail.com>


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