[WSBAPT] Retirement account left to trust until age 35

[Mike Winslow]

Suggest you talk to Judd Marten about this. Complex rules apply to placing
IRAS in trust following death of the tax payer.
http://www.lesourd.com/attorneys/judd_marten
 
 
Michael A. Winslow
1204 Cleveland Ave.
Mount Vernon, WA 98273
Ph. 360-336-3321
Em. Mike at winslegal.com
 
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From: wsbapt-bounces at lists.wsbarppt.com
[mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Margaret Delp
Sent: Friday, February 19, 2016 4:10 PM
To: 'WSBA Probate & Trust Listserv'
Subject: [WSBAPT] Retirement account left to trust until age 35
 
Hello Everyone: I have a client who wishes to leave her entire estate,
including IRA and 401(k) account, to a trust for her 2 children.  She wants
the trust assets distributed outright to them when the youngest reaches the
age of 35
 
MY QUESTION:  what happens to the Trust's IRA at the termination of the
trust when the beneficiary reaches age X? For example, let's say a child is
the beneficiary of a trust (that meets the 1.401(a)(9) look through rules)
and the trust says that all the assets in the trust will be distributed to
the child when he attains age 35. Would the IRA have to terminate and
distribute all of the assets to the beneficiary at that time (resulting in a
potentially significant tax liability at that time), or could the tax
deferral (stretch) be allowed to continue by transferring the remaining IRA
account to an inherited IRA in the name of the beneficiary when he attains
age 3r - thus allowing continued withdrawals over the beneficiary's
remaining life expectancy
Thank you!
Margaret
--
Law Office of Margaret Delp
2815 Howard Road, Second Floor
P.O. Box 292
Langley, WA 98260
(360) 579-4530 (telephone)
(360) 512-3114 (facsimile)
 
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