Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: TMFPixy Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19553  
Subject: Re: Naming a Trust as Beneficiary Date: 8/8/2000 3:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 1
Greetings, Lisa, and welcome. You wrote:

<<I've heard that naming a trust as the primary beneficiary can have negative tax consequences in that the trust is considered to have a zero life expectancy. Is this true and what are the other implications?

Also, how will this affect your options for calculating the MRD?>>

Yes, naming a trust as the beneficiary of an IRA could cause a problem by causing the immediate taxation on the IRA at death due to the zero life expectancy for MRD. No one -- I repeat -- no one should name a trust the beneficiary of an IRA without first seeking the advice of a skilled estate planning and trust attorney. To avoid the immediate payout of that IRA (and thus immediate taxation) at death, there are a number of hoops in trust law that must be leapt through, and it will take a competent attorney and cooperative IRA custodian to ensure all legal requirements are met.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


Foolanthropy 2014!
By working with young, first-time moms, Nurse-Family Partnership is able to truly change lives – for generations to come.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Berkshire Hathaway

Buffett's Biggest Mistake
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.