[WSBAPT] Accumulation trust

[Diane J. Kiepe]

Marvin,

The general rule under the SECURE Act is that funds must generally be paid out over 10 years (however If grandkids are minors then it could be longer).  An accumulation trust can actually hold the funds longer then the 10 years, the income tax implications may not be pretty though.  I am actually speaking a bit on this topic this week on Thursday through NBI – I’d be happy to chat with you on the SECURE ACT/IRA Trusts/PROS and CONS along with language but I am headed out for a week so it would have to be the week of the 24th.  There is definitely preferred language to use for a true accumulation trust, versus a trust to force the stretch over 10 years from the age of majority but allowing funds to be passed out to individual beneficiaries to avoid trust tax rates.  Just let me know and I totally understand if you can’t wait.

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Marvin Benson
Sent: Monday, June 7, 2021 12:56 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Accumulation trust

Dear Braintrust:

A client of mine for his estate plan (which primarily benefits grandchildren) wants to transfer IRA's to the trust.    I understand that when the trust is an accumulation trust,  the IRA can receive and hold /accumulate the distributions from the IRA over the 10 year period.

My question is what words/paragraphs to use to make the ordinary irrevocable trust become an accumulation trust.

Thank you.

Marvin Benson
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