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Pixy posted...

"Who was the beneficiary of the IRA, you or the trust? If the trust and the estate lawyer is saying you must take a lump sum, then you will probably have to take it that way for reasons I don't understand. OTOH, if you are the beneficiary of the IRA, then you may take it over your life OR at least as fast as your mother was taking it assuming she was taking distributions after age 70 1/2."

I have heard but have not been able to verify that if the beneficiary of a 401K or IRA is worded such that the trust is the beneficiary for the benefit of someone then the person who benefits can be considered as inheriting the 401k. Something to like "Family Trust for the benefit and welfare of XXXXXX" is sufficient to pass the 401K or IRA into the trust and shelter the funds from lump sum distribution.

I am not sure of this though. And will be hoping to confirm how this done some time soon.


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