[WSBAPT] IRA to Beneficiaries of a Descendant's Trust (Beneficiary Language for Plan Administrator)

[Derek Jensen]

David,

Natalie Choate has a whole host of beneficiary designation forms (one of which may meet your needs) and related discussions in her book. You can know subscribe to a digital version of her book, “Life and Death Planning for Retirement Benefits” for $9/ month on a month to month basis from her web site https://www.ataxplan.com/.

Also, since so many income bad tax results can happen with a distribution plan like you have described, be aware of the accumulation trust issues for naming the trust as a designated beneficiary. It would be terrible to get stuck with a 5 year distribution requirement and a tax rate of 39.6% on everything over $12,000 or so a year.

Sincerely,

Derek W. Jensen, JD, LLM
Managing Attorney


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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of David Faber
Sent: Tuesday, August 23, 2016 12:18 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] IRA to Beneficiaries of a Descendant's Trust (Beneficiary Language for Plan Administrator)

WSBAPT List:

I am working with an unmarried client who just lost one or their two children, which has left them dwelling on the "what ifs" of losing their other child. The bulk of the client's assets are held in IRA and they are still working. The client has named their surviving child as the first contingent beneficiary of the IRA and wants their grandchildren to be the beneficiaries if their surviving child predeceases. The complicating factor is that the client does not want the grandkids (who are all quite young--not even school-age yet) receiving a large supply of money before they can learn the value of money and instead only wants the kids to receive the money upon reaching the age of thirty. I believe I have amended the client's trust with sufficient language to allow the Trustee to administer the IRA, but I want to make sure I'm providing proper language to the plan administrator. Does anyone have example language that they provide the client to send to their plan administrator for this purpose that they would be willing to share?

Best,
David J. Faber
Faber Feinson PLLC
210 Polk Street, Suite 1
Port Townsend, WA 98368
(360) 379-4110

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