IRA Trusts

An IRA Trust is a special type of trust that is designed to receive your IRA accounts for the benefit of your loved ones after your death. Within the IRA Trust agreement, you will establish different sub-trusts for the benefit of your beneficiaries, including your spouse if you are married.

Benefits of an IRA Trust:

  • Assures your children will receive your retirement/IRA benefits in the event your spouse remarries
  • A Trustee can assure the beneficiaries properly withdraw the annual required distribution
  • Can protect against a beneficiaries poor spending habits or poor management
  • Ensure the right people inherit your IRA assets
  • Protect your children if they are high-risk
  • Provide generation skipping for estate tax purposes, meaning that if your child passes away, whatever remains in the trust will not be taxed again in your child’s estate for federal taxes
  • The trust owns the IRA, not your child, so in the event your child divorces or declares bankruptcy, their asset is protected.
  • The trust assures you will keep the IRA in your family instead of passing to your child’s spouse.