California Society of CPAs
Home       Members    Calendar    Who's On
Welcome Guest ( Login | Register )
        



family trust as contingent beneficary Expand / Collapse
Author
Message
Anonymous
Posted 10/28/2006 4:35:13 PM




Is it a beneficial to have as the contingent beneficary of retirement plans, the family trust as opposed to the children?
Post #249
Posted 10/29/2006 6:36:20 PM
Power Member

Power MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower MemberPower Member

Group: Forum Members
Last Login: 3/12/2011 12:58:57 PM
Posts: 147, Visits: 823
It depends. If the IRA owner is married and the spouse is the primary beneficiary, if the spouse disclaims or predeceases you look at the shortest life expectancy of the contingent beneficiary. If the family trust is the contingent, RMD payments will be made over the life of the surviving spouse (assuming he/she is the oldest trust beneficiary) and has diclaimed. If he/she has predeceased, the RMD payments will be made over the life expectancy of the oldest child even if the trust splits into one for each child.

If the children are the contingent beneficiaries and the primary predeceases or disclaims, they can use their individual life expectancies to claim RMDs (assuming the divide the IRA on a timely basis etc etc).

Does the IRA owner want to make sure that the payments are stretched out rather than allowing a beneficiary to cash out? If that's a concern, you need to name a trust as a beneficiary.

Mary Kay Foss

Post #250
« Prev Topic | Next Topic »


All times are GMT -8:00, Time now is 1:55pm

Powered by InstantForum.NET v4.1.4 © 2012
Execution: 0.078. 8 queries. Compression Disabled.