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<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext">Mark,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext">I have worked quite a bit with conduit and accumulation trusts. The drafting of the conduit trust under secure you can provide for an up-to 10 year stretch but there is no reference to RMD
as there was in the past.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext">Naming the estate is the least desirable of all options not so much for tax reasons but the potential to expose such funds to the creditor’s of the plan participant in certain instances when
it would otherwise be protected from the same.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext">I’d be happy to set up a time to chat-it’s an area difficult to just e-mail about.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext">Best of luck,<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
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<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";color:windowtext">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold";color:windowtext"><o:p> </o:p></span></i></p>
<p class="MsoNormal"><span style="color:windowtext">Diane J. Kiepe<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">Douglas Eden<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">717 W. Sprague Ave.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">Suite 1500<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">Spokane, WA 99201<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:windowtext">509-455-5300<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:16.0pt;color:windowtext"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="color:windowtext">From:</span></b><span style="color:windowtext"> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>1 Mark Mullins Law Office<br>
<b>Sent:</b> Tuesday, June 23, 2020 4:45 PM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> [WSBAPT] IRA distributions through trust (testamentary) under SECURE act - 2020 0623<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p><span style="font-family:"Arial",sans-serif">Dear Listmates:<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">These questions are based on a testator/rix who would rather designate benefits (%s) through the Will than a host of separate IRA beneficiary designations. While I expect this may not work, will be uncertain under
the SECURE Act, or significantly expand the length of his Will, and that it may be best to designate separate beneficiaries to allow all of them the benefit from their own use of the 10-year rule, I thought I should see what options are out there.
<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">Under the SECURE Act, can conduit testamentary trusts be used to spread out over 10 years (including delay into the 10th year) the recognition of standard (i.e. non-Roth) IRA income for designated beneficiaries
(in this case, the spouse will be the primary beneficiary, but we're planning for the death of the surviving spouse and there are no (disabled, minor, etc.) beneficiaries eligible for stretching)?
<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">Not having done a IRA benefit conduit trust in the first place, what/where is a good resource for a form or provisions for a conduit trust?<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">Also, can the Will have separate IRA benefits conduit testamentary trusts (1 for each beneficiary), so each beneficiary gets the most stretching possible (in this case, stretching will no longer mean over life
expectancy but spreading out or postponing over the 10 years allowed)?<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">Finally, if the IRA simply goes to the estate, does that result in an immediate recognition of income of the entire IRA, or is there still an option to spread the income out over 5 years (presumably evenly)?
<o:p></o:p></span></p>
<p><span style="font-family:"Arial",sans-serif">Mark D. Mullins<br>
Attorney at Law<o:p></o:p></span></p>
<p><span style="font-size:10.0pt;font-family:"Arial",sans-serif"><o:p> </o:p></span></p>
<p align="center" style="text-align:center"><i><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Law Office of</span></i><i><span style="font-size:7.5pt;font-family:"Arial",sans-serif"><br>
</span></i><b><span style="font-size:13.5pt;font-family:"Times",serif">M</span></b><b><span style="font-size:10.0pt;font-family:"Times",serif">ARK</span></b>
<b><span style="font-size:13.5pt;font-family:"Times",serif">D</span></b><b><span style="font-size:10.0pt;font-family:"Times",serif">.</span></b>
<b><span style="font-size:13.5pt;font-family:"Times",serif">M</span></b><b><span style="font-size:10.0pt;font-family:"Times",serif">ULLINS</span></b><b><span style="font-size:7.5pt;font-family:"Times",serif"><br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif">206 South Lincoln Street, Suite 205</span><span style="font-size:7.5pt;font-family:"Arial",sans-serif"><br>
</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Port Angeles, WA 98362</span><span style="font-size:10.0pt;font-family:"LinePrinter",serif"><br>
</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif">Telephone: (360)457-7223 Facsimile: by arrangement<br>
</span><a href="mailto:mullinslaw@msn.com"><span style="font-size:10.0pt;font-family:"Arial",sans-serif">mullinslaw@msn.com</span></a><o:p></o:p></p>
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