Who or what is listed as the beneficiary on your IRA? We get into various reasons for and against having a trust and how the most recent rules might affect how your estate plan is currently set up.
Have you ever considered assigning your trust as an IRA beneficiary? Some have chosen not to designate a person as their trust beneficiary, but with recent changes is that wise? There are good reasons to have trusts, but the majority of our listeners wouldn’t need one.
For those with young children, a child with special needs, a blended family from a second marriage, or beneficiaries who have proven they can’t manage their money, a trust might be the right move for you. David explains some of the trusts he has seen and why the SECURE Act changed things.
If your terms are set by the required minimum distributions to your children, David outlines how this could have significant unintended consequences. If your heirs are going to act responsibly, you ought to just name those heirs as the beneficiaries of those IRAs. Generally speaking, it is advisable to have the actual persons named as the beneficiaries of your IRAs, 401(k), 403(b), and 457, and not have it run through a trust. If you have a specific reason to use a trust, talk to an estate-planning attorney and fiduciary to set it up appropriately.
Remember that the years prior to 2019 had different recommendations based on the rules at the time. You don’t want to put this off. If you have a question or need to update your estate plan, reach out to David and his team for help.
Listen to the entire episode or skip ahead using the timestamps below.
0:28 - David brainstorms future podcast ideas.
1:39 - Who needs a trust?
4:03 - When is it a bad idea to have an IRA as the beneficiary?
5:50 - Why does this matter right now?
9:14 - How has this changed since 2019?
“If your heirs are going to act responsibly, you ought to just name those heirs as the beneficiaries as those IRAs."
– David Dickens
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CONTACT US
OUR LOCATION
10975 Grandview Drive
Building 27, Suite 190
Overland Park, KS 66210
Get Directions
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