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

[David Faber]

Jared,

UTMA is a reasonable option. The problem we face, however, is that the
client is keen on 30 being the age that the grandkids receive the IRA free
of trust. The difference between 25 and 30 can be night and day... Now I am
wrestling with the language trying to make sure that we navigate the income
tax issues but having significant trouble wrapping my head around all of
the details in the rules.

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

*** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL.
This communication may contain privileged or other confidential
information. If you are not the intended recipient, or believe that
you have received this communication in error, please do not print,
copy, retransmit, disseminate, or otherwise use the information. Also,
please indicate to the sender that you have received this communication in
error, and destroy the copy you received.***

On Tue, Aug 23, 2016 at 7:10 PM, Jared E. Adams <jared at condieadams.com>
wrote:

> Why not consider naming the grandchildren as the contingent beneficiaries,
> but designating a custodian under the Uniform Transfers to Minors Act?
> Under RCW 11.114.200, you can elect to extend the custodianship until a
> beneficiary is 25.  It’s not customizable like a trust, but you avoid the
> income tax problems associated with putting retirement accounts into trust.
>
>
>
> Jared
>
>
>
>
>
> Jared E. Adams, JD, LL.M.
>
>
>
> Condie & Adams, PLLC
> 611 4th Avenue, Suite A
> Kirkland, WA  98033
> (voice):  (425) 450-1040
> (fax):  (425) 450-1041
>
> (email): jared at condieadams.com
>
> (web): www.condieadams.com
>
>
>
> *Unless otherwise expressly indicated, any federal tax advice contained in
> this communication, including attachments and enclosures, is not intended
> or written to be used, and may not be used, for the purpose of (i) avoiding
> tax-related penalties under the Internal Revenue Code or (ii) promoting,
> marketing or recommending to another party any tax-related matters
> addressed herein.*
>
>
>
> *PLEASE READ THIS ENTIRE DISCLAIMER*
>
> This message is from the Law Office of CONDIE & ADAMS, PLLC, and is
> intended only for the addressee.  The information contained in this message
> is privileged, confidential, and protected by the attorney-client or
> attorney work product privileges.  Unauthorized forwarding, printing,
> copying, distribution, disclosure or use of such information is strictly
> prohibited.  If you are not the addressee, please promptly delete this
> message and notify the sender of the delivery error by return e-mail or you
> may call our office at (425) 450-1040. Nothing in this message should be
> interpreted as a digital or electronic signature that can be used to
> authenticate a contract or other legal document.
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com] *On Behalf Of *Derek Jensen
> *Sent:* Tuesday, August 23, 2016 1:23 PM
> *To:* WSBA Probate & Trust Listserv
> *Subject:* Re: [WSBAPT] IRA to Beneficiaries of a Descendant's Trust
> (Beneficiary Language for Plan Administrator)
>
>
>
> 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
>
>
>
>
>
> [image: New Logo.tif]
>
>
>
> Jensen Law Office, PLLC
>
> 1833 N 105th St., Suite 301
>
> Seattle, WA 98133
>
> Tel: 206-547-1412
>
> Fax: (206) 770-6524
>
>
>
> Everett, Washington
>
> Tel: (425) 374-1712
>
>
>
> 8201 164th Ave NE, Suite 200
>
> Redmond, WA 98052
>
> Tel: (425) 698-2214
>
>
>
> Find us on the web at: www.jensenestatelaw.com
>
>
>
> NOTICE:  This e-mail message and all attachments transmitted with it may
> contain legally privileged and confidential information intended solely for
> the use of the addressee.  If you are not the intended recipient, you are
> hereby notified that any reading, dissemination, distribution, copying, or
> other use of this message or its attachments is strictly prohibited.  If
> you have received this message in error, please notify the sender
> immediately by electronic mail or by telephone (206) 547-1412 and delete
> this message and any copies or backups.  Thank you.
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com <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
>
>
>
> *** NOTICE: ATTORNEY CLIENT COMMUNICATION - PRIVILEGED & CONFIDENTIAL.
> This communication may contain privileged or other confidential
> information. If you are not the intended recipient, or believe that
> you have received this communication in error, please do not print,
> copy, retransmit, disseminate, or otherwise use the information. Also,
> please indicate to the sender that you have received this communication in
> error, and destroy the copy you received.***
>
> _______________________________________________
> WSBAPT mailing list
> WSBAPT at lists.wsbarppt.com
> http://mailman.fsr.com/mailman/listinfo/wsbapt
>
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160825/3ec1acab/attachment.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 12105 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160825/3ec1acab/image001.png>