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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.

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