Do You Know the Special Steps (and Pitfalls)
in Administering an IRA Beneficiary Trust
After the IRA Owner Dies?
IRA Beneficiary Trusts have become all the rage in recent years, and for good reason.
An IRA Beneficiary Trust can help assure that beneficiaries will properly utilize the “stretchout” of required minimum distributions (so they can compound wealth for their later in life needs). It can also ensure that beneficiaries take advantage of the protection a trust can offer against spouses, divorces, lawsuits, creditors, loss of government benefits and estate tax when they die.
More and more practitioners are setting up these IRA Beneficiary Trusts, for not only clients’ IRAs but for their qualified retirement plans that later may be rolled to IRAs too.
But, very few practitioners have actually administered such an
IRA Beneficiary Trust after a client’s death and have
no idea of the tricks and traps involved!
Administering an IRA Beneficiary Trust may be similar in some ways to administering a Living Trust, but in many ways it’s not!
Do you know how to properly handle all of these critical implementation steps and issues, so you don’t “blow up” the trust and have to contact your E&O carrier? For example, do you know…
- How to properly and timely determine the “measuring lives” for required minimum distribution (“RMD”) purposes
- How to coordinate with the Trustee, beneficiaries, and the client’s other advisors regarding time-critical and extremely important income tax and asset protection “elections” (including disclaimers and “conduit” or “accumulation” trust treatment)
- How to coordinate properly with the Trustee of the client’s Living Trust (or Executor of his or her estate) on numerous estate tax-related issues, including electing portability or bypass trust funding
- How to properly establish the beneficiaries’ sub-share trusts and modify them, if necessary, to meet the needs and circumstances of each beneficiary
- How to avoid missing any of the four critical deadlines, established under the Internal Revenue Code and Regulations
- How to transfer the IRA when the Trust terminates without triggering income taxation
- How to fix and avoid problems that can arise due to defective beneficiary designation forms, inappropriate or outdated trust terms, or missed deadlines
- And much, much more!
Join nationally renowned estate planning attorney (and Ultimate Estate Planner President) Philip Kavesh—who obtained the 2005 ground-breaking PLR for his IRA Beneficiary Trust® and has since drafted and administered numerous such IRA Beneficiary Trusts—for a 90-minute presentation entitled, “Proper Post-Death Administration of IRA Beneficiary Trusts”.
If you’ve ever set up an IRA Beneficiary Trust, or are thinking about adding this “new wave” planning device to your practice before it becomes “legal zoomed”, you should attend this program. You’ll not only learn how to administer the Trust, you’ll get an invaluable Post-Mortem Checklist to be sure you don’t miss or blow any important steps!