Thorny Issues When Leaving IRA to Trust for Young Children
Why do back flips to qualify for a life expectancy payout that may soon cease to exist?
Question: My client wants to leave his IRA to a trust for his children. Each child's share would be used for such child's care, education, comfort, and support until the child reaches age 30, at which time the child would take control. If a child dies before age 30, his/her share would pass to his/her issue if any, otherwise to the other children's shares.
I told the client he needed to name a "wipe-out beneficiary" in case all his children were to die without issue while there is still money in this trust--a most unlikely event but one which nevertheless must be covered in the trust. The client said in that case the trust should pass to his "heirs-at-law."
Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.
We’d like to share more about how we work and what drives our day-to-day business.
We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.
How we use your information depends on the product and service that you use and your relationship with us. We may use it to:
To learn more about how we handle and protect your data, visit our privacy center.
Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.
To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.
Read our editorial policy to learn more about our process.