Leave an IRA through a Trust?

Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
Post Reply
Topic Author
RadAudit
Posts: 3605
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Leave an IRA through a Trust?

Post by RadAudit » Thu Apr 23, 2015 10:24 am

First off, thank you all for your help in the past.

A question has come up on the best way to leave an IRA to a beneficiary. Obviously, one can designate a beneficiary and the IRA will transfer at the death of the owner. An alternative approach is to leave the IRA to a trust at the death of the owner and have the trust leave the IRA to the beneficiary.

Details. In making out a will several years ago, we decided to establish a trust. At the time, one of the kids was in a marriage that was not going well. We decided that at my death the IRA would pass to my spouse in its entirety (anyone who puts up with me that long deserves something). At her death, the IRAs would pass to the trust. The trust would then split into two parts and each kid would then own their separate IRA in their trust - as I understand it. The trust was set up that way to maximize the chance that the money in the estate would stay with the kids instead of being subject to any possible split up in a potential divorce downstream.

Now, I'll ask for your opinion, if you wish to share. Which way is better? What am I missing?
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

Gill
Posts: 5763
Joined: Sun Mar 04, 2007 8:38 pm
Location: Florida

Re: Leave an IRA through a Trust?

Post by Gill » Thu Apr 23, 2015 10:29 am

You're not missing anything. I've done the same thing with my IRA, having it pass to a trust specifically designed to qualify to receive the IRA proceeds.
Gill
Cost basis is redundant. One has a basis in an investment | One advises and gives advice | One should follow the principle of investing one's principal

bsteiner
Posts: 4392
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Leave an IRA through a Trust?

Post by bsteiner » Thu Apr 23, 2015 10:36 am

Our clients generally provide for their children in separate trusts for their benefit rather than outright. The same reasons for this apply in the case of retirement benefits as for other assets.

There are some special rules governing trusts that receive IRA benefits. Here is an article that I wrote on this subject in the March 2004 issue of BNA Tax Management's Estates, Gifts & Trusts Journal: http://www.elderlawanswers.com/Document ... nefits.pdf.

User avatar
Matahari
Posts: 390
Joined: Sun Mar 08, 2015 3:09 pm

Re: Leave an IRA through a Trust?

Post by Matahari » Thu Apr 23, 2015 1:59 pm

Here is an article by Michael Kitces about leaving an IRA to a "See-Through" trust that I find helpful:

https://www.kitces.com/blog/qualifying- ... umulation/

The issue really involves whether (1) you want the IRA to distribute to the trust first, then to the trust beneficiaries or (2) you want the trust to act as a "conduit" to divide up the IRA to individual beneficiaries but each beneficiary will take an inherited IRA.

Alan S.
Posts: 8677
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Leave an IRA through a Trust?

Post by Alan S. » Thu Apr 23, 2015 2:54 pm

Matahari wrote:Here is an article by Michael Kitces about leaving an IRA to a "See-Through" trust that I find helpful:

https://www.kitces.com/blog/qualifying- ... umulation/

The issue really involves whether (1) you want the IRA to distribute to the trust first, then to the trust beneficiaries or (2) you want the trust to act as a "conduit" to divide up the IRA to individual beneficiaries but each beneficiary will take an inherited IRA.
Until the IRA is assigned out of trust to the trust beneficiaries, the creditor protection benefit is in place, but once the IRA is assigned directly to the beneficiaries as an inherited IRA, the trust is no longer a factor, and therefore there is no longer any creditor protection.

A conduit trust forces RMDs and additional distributions as permitted through the trust to the trust beneficiaries. In this case, the individual tax rate of the beneficiary will apply rather than the much higher compressed trust rates, but the funds lose creditor protection upon distribution to those beneficiaries.

In other words, the trade off is tax rates vs creditor protection. A greater loss of assets to the IRS vs. potentially the loss of the entire asset to a creditor including a spouse. Note that with the loss of creditor protection for inherited IRAs per the recent Supreme Court decision, there are only a handful of states remaining that have passed statutes specifically protecting inherited IRAs from creditors. But even those laws do not protect distributions from the IRA. The administration has also proposed a mandatory 5 year rule for non spouse inherited IRAs which would have a negative affect on qualified trust IRA beneficiaries since the funds would end up either in the trust or in the beneficiary's bank account much faster, erasing most of the tax deferral benefit.

User avatar
Watty
Posts: 17568
Joined: Wed Oct 10, 2007 3:55 pm

Re: Leave an IRA through a Trust?

Post by Watty » Thu Apr 23, 2015 3:36 pm

What am I missing?
It would be best to check with lawyer that set up the trust to make sure that it is done right.

I have heard of a situation where it took a lot of a lawyers time ($$$) to get a situation like that straightened out, with the possibility that all the money could have had to come out of the IRA and taxed at once if it did not get fixed.

Part of the problem is that not only does it need to be done right, but the custodian of the IRA needs to agree that it is OK and is willing to split up the IRA.

BH13
Posts: 56
Joined: Thu Oct 20, 2011 2:38 pm

Re: Leave an IRA through a Trust?

Post by BH13 » Thu Apr 23, 2015 4:22 pm

This issue was a big headache for our family a few years back.

My parent had left their IRA with a Trust as beneficiary with myself & sibling as trust beneficiaries.

Unfortunately, the Schwab (IRA custodian) estate & trust team did not view the trust as a "See-Through" trust, which did not allow:
a. Siblings to split the IRA account and manage it independently
b. Would lead to higher "Trust rate" taxation.

Estate Atty has done "hundreds" of "See-through" trusts and never had this issue with a custodian before. After 6 months of back & forth, the estate attorney helped to transfer IRA custodian to Merrill Lynch. Merrill considered this a proper "See through" trust. Eventually, We were able to split the Inh IRA in two and stretch it out.

As executor, this was a major headache in what should have been a simple, planned out affair.

After this experience, I've structured my IRA's with my spouse as beneficiary, and kids as co-contingent beneficiaries directly.

EDIT: Of course all of this resulted in thousands of added legal fees.

User avatar
Matahari
Posts: 390
Joined: Sun Mar 08, 2015 3:09 pm

Re: Leave an IRA through a Trust?

Post by Matahari » Thu Apr 23, 2015 4:29 pm

As an addendum to BH13's post:

Vanguard is another custodian that will allow such "pass-through" treatment.

https://personal.vanguard.com/us/whatwe ... anonspouse

Here is Vanguard's language on the topic:
Pass-through service
Some special options may be available to you if the original account owner designated a trust for your benefit or the owner's estate is the IRA beneficiary. If you're the designated beneficiary of an IRA through a trust (or the IRA owner's estate), you can take advantage of Vanguard's pass-through service. With proper authorization from the trustee of the designated trust or, the authorized representative of the account owner's estate designated as beneficiary, we'll transfer the assets to an account in your name.
On a personal note: Vanguard "saved" our situation, wherein the decedent's IRA's default beneficiary was the decedent's estate. I got the Estate Inherited IRA transferred to Vanguard, which cooperated with dividing the IRA pursuant to instructions by the Estate's executor.

Alan S.
Posts: 8677
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Leave an IRA through a Trust?

Post by Alan S. » Thu Apr 23, 2015 7:16 pm

Of course, if the trust provisions allow the trustee to terminate the trust and have the IRA transferred to the beneficiaries, the creditor protection benefits are lost. In such a situation, because the trust was the actual beneficiary on the IRA agreement, the separate account rules do not apply to inherited IRAs of the beneficiaries. With some IRA custodians that resist assignment of the IRA to beneficiaries, the trustee may have to transfer the IRA to another custodian that understands these rules, and then complete the assignment.

Separate inherited IRA accounts are still permitted in this situation and accord the beneficiaries separate accounts and control, but the RMDs for all beneficiaries must continue to be based on the oldest trust beneficiary, the same as if the trust was continued IF the trust was qualified for look through treatment.

If the trust fails to meet look through requirements or the trustee misses the custodian notification deadline, the trust is treated as a NON INDIVIDUAL beneficiary. RMDs are then determined in the same manner as an estate IRA beneficiary. If owner passed prior to the RBD, the 5 year rule applies. If owner passed on or after the RBD, the remaining life expectancy of the decedent is used to determine the inherited IRA RMDs that remain.

Topic Author
RadAudit
Posts: 3605
Joined: Mon May 26, 2008 10:20 am
Location: Second star on the right and straight on 'til morning

Re: Leave an IRA through a Trust?

Post by RadAudit » Thu Apr 23, 2015 8:00 pm

Thanks to all for your help
FI is the best revenge. LBYM. Invest the rest. Stay the course. - PS: The cavalry isn't coming, kids. You are on your own.

LeeMKE
Posts: 1884
Joined: Mon Oct 14, 2013 9:40 pm

Re: Leave an IRA through a Trust?

Post by LeeMKE » Thu Apr 23, 2015 11:22 pm

I'm reading a book you should also read: Your Complete Retirement Planning Road Map by Ed Slott.

We will not be moving any IRAs into a trust now that I understand a little bit about IRAs and trusts. One problem is that the beneficiary has very attractive options to extend the period of draw down from the IRA if they are named as the beneficiary instead of the trust receiving the IRA first and then distributing it. The funds can be forced out over 5 years, and if the amount is significant, this could cause the beneficiaries to pay a much higher tax burden than desirable.

My understanding is not thorough because I'm reading it only for our situation. But you might find it worthwhile to read the pertinent chapters in this book.
The mightiest Oak is just a nut who stayed the course.

Browser
Posts: 4857
Joined: Wed Sep 05, 2012 4:54 pm

Re: Leave an IRA through a Trust?

Post by Browser » Fri Apr 24, 2015 10:02 am

Trusts as beneficiaries are not only useful for creditor protection purposes, but to allow distribution of inherited assets to be managed in cases where it might be inappropriate for the beneficiary or beneficiaries to directly inherit an IRA. There are many cases where this might apply based on the youth of the beneficiary (IRAs can be inherited at age 18), the health of the beneficiary, Medicaid eligibility, disability, mental status, or financial irresponsibility. It these cases, there is little choice other than establishing a trust as beneficiary of an IRA. In my case, my attorney recommended establishing testamentary trusts in my Will that would become effective if any potential stretch beneficiary were younger than age 25, which I did. I came to find that Vanguard would not approve or implement this arrangement; whereas my other custodians such as TIAA had no problem with it. I've subsequently moved most of my IRA money out of Vanguard, except for my Roth IRA. I'm considering setting up a trust as beneficiary for the Roth.
We don't know where we are, or where we're going -- but we're making good time.

ChrisC
Posts: 842
Joined: Tue Jun 19, 2012 9:10 am
Location: North Carolina

Re: Leave an IRA through a Trust?

Post by ChrisC » Fri Apr 24, 2015 1:36 pm

LeeMKE wrote:I'm reading a book you should also read: Your Complete Retirement Planning Road Map by Ed Slott.

We will not be moving any IRAs into a trust now that I understand a little bit about IRAs and trusts. One problem is that the beneficiary has very attractive options to extend the period of draw down from the IRA if they are named as the beneficiary instead of the trust receiving the IRA first and then distributing it. The funds can be forced out over 5 years, and if the amount is significant, this could cause the beneficiaries to pay a much higher tax burden than desirable.

My understanding is not thorough because I'm reading it only for our situation. But you might find it worthwhile to read the pertinent chapters in this book.
Hmmmm, I guess you have not fully digested some of the posts in this thread that highlight the fact that a trust could also be structured to pass-through stretch periods to designated beneficiaries. There are many trade-offs to consider with structuring your estate planning with the trust as the beneficiary of IRA/401K accounts, but with proper structuring of the trust, your concern would not be one of them. On the other hand, the trust could be structured in a manner that could effect inherited IRA/401K distributions in a more orchestrated and controlled fashion, which might be important if you have multiple beneficiaries, with multiple accounts (Roth and non-Roth, IRA and 401K), and multiple custodians. I'm leaning towards having a pass-through (or see-through) trust for our accounts, because of these other factors. A trust would also make it difficult for any one designated beneficiary to immediately drain his legacy share in your IRA/401K accounts, as well.

LeeMKE
Posts: 1884
Joined: Mon Oct 14, 2013 9:40 pm

Re: Leave an IRA through a Trust?

Post by LeeMKE » Sat Apr 25, 2015 12:25 am

Hmmmm, I guess you have not fully digested some of the posts in this thread that highlight the fact that a trust could also be structured to pass-through stretch periods to designated beneficiaries. There are many trade-offs to consider with structuring your estate planning with the trust as the beneficiary of IRA/401K accounts, but with proper structuring of the trust, your concern would not be one of them. On the other hand, the trust could be structured in a manner that could effect inherited IRA/401K distributions in a more orchestrated and controlled fashion, which might be important if you have multiple beneficiaries, with multiple accounts (Roth and non-Roth, IRA and 401K), and multiple custodians. I'm leaning towards having a pass-through (or see-through) trust for our accounts, because of these other factors. A trust would also make it difficult for any one designated beneficiary to immediately drain his legacy share in your IRA/401K accounts, as well.
I am not an expert on this topic, but have discovered to my dismay that many situations would be more simply handled, and save significant taxes if they had avoided using a trust. I would refer you to Ed Slott's book rather than my trying to interpret your situation from my amateur viewpoint.
The mightiest Oak is just a nut who stayed the course.

BigJohn
Posts: 1801
Joined: Wed Apr 02, 2014 11:27 pm

Re: Leave an IRA through a Trust?

Post by BigJohn » Sat Apr 25, 2015 9:01 am

LeeMKE wrote:I'm reading a book you should also read: Your Complete Retirement Planning Road Map by Ed Slott.

We will not be moving any IRAs into a trust now that I understand a little bit about IRAs and trusts. One problem is that the beneficiary has very attractive options to extend the period of draw down from the IRA if they are named as the beneficiary instead of the trust receiving the IRA first and then distributing it. The funds can be forced out over 5 years, and if the amount is significant, this could cause the beneficiaries to pay a much higher tax burden than desirable.

My understanding is not thorough because I'm reading it only for our situation. But you might find it worthwhile to read the pertinent chapters in this book.
+1 on the benefits of reading this book.

I'd also suggest reading "The Retirement Savings Time Bomb and How to Defuse It" buy the same author. I never knew there were so may subtle ways to screw up making sure your heirs can take advantage of stretching the IRA benefits. Not only do I have to set things up correctly now, my heirs have to know what to do when they inherit.

harmony
Posts: 536
Joined: Sun Nov 24, 2013 1:35 am

Re: Leave an IRA through a Trust?

Post by harmony » Sat Apr 25, 2015 1:17 pm

Thanks to the OP for posting this question and to everyone who has commented. Ed Slott's books were basic and Bruce Steiner's excellent article built our understanding of this. The Michael Kitces article linked above is the most detailed on conduit trusts vs. accumulation trusts I've seen. Thank you for that. Certainly these choices are optional for many here, but with a disabled child, a trust is necessary for us. The Roth IRA stretch feature will greatly facilitate keeping the accumulations out of the trust itself.

The experiences with custodians that IRA trust heirs have posted here also help to advance our understanding. Those who plan to bequeath IRAs to a trust can use this information to attempt to place their IRAs with custodians who will accommodate the requirements of the trust: the splitting and the looking through. These issues can be discussed with the custodian before death and specific instructions can be left to the trustee; so the time and cost to switch custodians would hopefully not be a factor.

My search isn't finished yet, but the mention of Vanguard and Merrill Lynch, as custodians who handle distributions for an Inherited IRA see-through trust beneficiary, led me to look around for other capable custodians who would do automated RMD withdrawals based on the life expectancy of a beneficiary of a look-through trust. This won't be the only criterion for chosing a custodian, but as an IRA owner planning to bequeath to a look-through trust, I think it might help to show our trustee the forms which he would need to file with the custodian after I die. (Granted, first the IRA would need to be titled as an inherited IRA and all forms used will need to be current.) I focused my search on inherited IRA beneficiary distribution forms with an automated withdrawal option for the beneficiary of a see-through trust where the distribution is based on the beneficiary's life expectancy.

My search was disappointing in that very few of the custodians provide distribution forms which will set up automated withdrawals for the beneficiary of a see-through trust. Most of them have a form which will allow an inherited IRA beneficiary (individual or trust) to make a withdrawal though. It seems it would be simpler for a trustee to get automated RMDs, as can be done for individual IRA beneficiaries. Perhaps a custodian would provide more options than allowed on the form, but this is not reassuring.

TIAA-CREF, for example, will hold an Inherited IRA in their brokerage, but won't calculate the RMD:
See asterisk on p.13 https://www.tiaa-cref.org/public/pdf/Ta ... y-2014.pdf
“If you roll over assets to establish an Inherited IRA through TIAA-CREF Brokerage Services, we are not able to calculate your required minimum distributions. These calculations are very complex and include many variables. So to protect you from unwanted tax consequences, we recommend that you consult your tax advisor.”

Fidelity was the exception. Their Inherited IRA withdrawal form allows specifically for a look-through trust beneficiary. Here's a link for Fidelity's “Automatic Withdrawals—Inherited IRA” form:

https://www.fidelity.com/retirement-pla ... ed-ira-mrd

On the above page under the center green field “automate your withdrawals” there is a link which goes directly to the form:

https://www.fidelity.com/bin-public/060 ... ed-ira.pdf

As stated in the header, this form can be used to “establish, change, or delete an ongoing withdrawal plan from an Inherited IRA or Inherited Roth IRA account.” Part 2 has a box to check for a look-through trust. (No other custodian's form so far has used this term.) Part 4 has a box for an Inherited MRD, and allows for reducing the amount by distributions already made in that year.

I did not find a similar form at any other brokerage that is as broad and flexible as the Fidelity form. I am still poking around at VG and ML. I may need to call them and some other brokerages on Monday. Thank you to the IRA heirs who posted their experiences.

User avatar
Matahari
Posts: 390
Joined: Sun Mar 08, 2015 3:09 pm

Re: Leave an IRA through a Trust?

Post by Matahari » Sat Apr 25, 2015 1:25 pm

Harmony,

Thank you for contributing your experience. It was my experience that only in settling 7 IRAs (spread among 5 companies) did I become aware of the issues and pitfalls. And I'm sure I only scratched the surface.

The only way to make sure that you have done your best to uncover all the issues is through research and (it's a good thing you are doing so) contact each financial institution to do a "dry run" so that you can figure out its limitations. The more you know now and the less you assume to be the case, the fewer risks you take that your plan runs into trouble.

Another excellent resource is Natalie Choate:

http://www.ataxplan.com/about_natalie/choate_bio.cfm

Leesbro63
Posts: 5984
Joined: Mon Nov 08, 2010 4:36 pm

Re: Leave an IRA through a Trust?

Post by Leesbro63 » Sat Apr 25, 2015 1:30 pm

Another great source on IRAs-to-trust is James Lange: http://www.paytaxeslater.com/idealsolution.php

MnD
Posts: 4345
Joined: Mon Jan 14, 2008 12:41 pm

Re: Leave an IRA through a Trust?

Post by MnD » Tue Jan 26, 2016 3:59 pm

Our attorney mentioned this. He indicated they were rather complex and expensive to set up, but combine the protective benefits of a trust and the benefits of the individual RMD stretch-out provisions. I found a link that I believe summarizes the approach.
http://www.tomboumanlaw.com/ira-trusts.html

I oversaw the split of my parents IRA to the 5 kids (including me). I made sure everyone set up the proper inherited IRA account to receive it, but I believe I may be the only one that has taken just the RMD every year since 1999. Some who took additional did smart things with the money and others not so smart. No-one lost the funds to any third party fortunately. I'm not sure I would have cared for my parents "managing from the grave" to the extent that the IRA protection trust approach does which seeks to compel the maximum stretch-out.

I think we are going to skip this option in updating our estate paperwork. Our young adult kids seem age appropriate or better as far as financial responsibility. If later we have specific/concrete concerns about financial responsibility, their spouses, high financial risk activities or occupations we could always add it.

Alan S.
Posts: 8677
Joined: Mon May 16, 2011 6:07 pm
Location: Prescott, AZ

Re: Leave an IRA through a Trust?

Post by Alan S. » Tue Jan 26, 2016 6:07 pm

Sounds like a wise decision. In most cases, I would think a much higher minimum would apply to consider this. Expenses are not just establishing the trust, the trust must be maintained and in RMD years a 1041 will be needed every year. If one child presents a disproportionate exposure to creditors or becomes a special needs situation, you could always leave your IRA outright to the others and put a trust in place for the special situation.

bsteiner
Posts: 4392
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Leave an IRA through a Trust?

Post by bsteiner » Tue Jan 26, 2016 7:04 pm

MnD wrote:Our attorney mentioned this. He indicated they were rather complex and expensive to set up, .....
They're not expensive to set up. You just need some extra provisions in your Will saying that any IRA benefits payable in trust for a beneficiary are held in a separate trust, having the same terms as the trust for the beneficiary's other assets, except that none of the IRA benefits may ever go to anyone older than the person whose life expectancy you want to use to measure the required distributions (usually the oldest child, or the oldest of the children and their spouses as of your death, or the oldest of your children, their spouses as of your death, and your nieces and nephews), or to anyone other than an individual (no charities) or another trust subject to the same restrictions. We include these provisions routinely.

As for administering the trusts after death, the additional complexity is the annual income tax returns for the trusts. However, these returns won't be particularly complicated.

ThisTimeItsDifferent
Posts: 245
Joined: Sat Jan 31, 2015 2:51 pm

Re: Leave an IRA through a Trust?

Post by ThisTimeItsDifferent » Sun Aug 19, 2018 10:27 pm

bsteiner wrote:
Tue Jan 26, 2016 7:04 pm
MnD wrote:Our attorney mentioned this. He indicated they were rather complex and expensive to set up, .....
They're not expensive to set up. You just need some extra provisions in your Will saying that any IRA benefits payable in trust for a beneficiary are held in a separate trust, having the same terms as the trust for the beneficiary's other assets, except that none of the IRA benefits may ever go to anyone older than the person whose life expectancy you want to use to measure the required distributions (usually the oldest child, or the oldest of the children and their spouses as of your death, or the oldest of your children, their spouses as of your death, and your nieces and nephews), or to anyone other than an individual (no charities) or another trust subject to the same restrictions. We include these provisions routinely.

As for administering the trusts after death, the additional complexity is the annual income tax returns for the trusts. However, these returns won't be particularly complicated.
I'm NOT asking for legal advice here as that is outside the forum's charter.

I searched the forums but didn't find anyone address my query.

What has been others’ experience setting up or using Vanguard or Fidelity to administer a beneficiary trust for a minor beneficiary, specifically after a parent’s death?

Have they answered detailed questions before getting the trust documents? I was not able to get them to answer any questions, or even return a call or email.

Not asking for Legal advice from Vanguard, I wanted to know whether they would:
• administer conduit and accumulation trusts?
• administer an inherited 401k/IRA through the trust?
• convert a 401k after the owner’s death to an inherited IRA?
• use the life expectancy RMDs rather than the 5 year rule for a trust set up as “see through”?
• on dissolution of the trust, rather than take a full distribution, instead transfer the IRA to the beneficiary?

I was not asking them for legal advice on what I should do, but rather what they support.

bsteiner
Posts: 4392
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: Leave an IRA through a Trust?

Post by bsteiner » Mon Aug 20, 2018 8:21 am

ThisTimeItsDifferent wrote:
Sun Aug 19, 2018 10:27 pm
...
What has been others’ experience setting up or using Vanguard or Fidelity to administer a beneficiary trust for a minor beneficiary, specifically after a parent’s death?

Have they answered detailed questions before getting the trust documents? I was not able to get them to answer any questions, or even return a call or email.

Not asking for Legal advice from Vanguard, I wanted to know whether they would:
• administer conduit and accumulation trusts?
• administer an inherited 401k/IRA through the trust?
• convert a 401k after the owner’s death to an inherited IRA?
• use the life expectancy RMDs rather than the 5 year rule for a trust set up as “see through”?
• on dissolution of the trust, rather than take a full distribution, instead transfer the IRA to the beneficiary?

I was not asking them for legal advice on what I should do, but rather what they support.
There aren't enough people who've named Vanguard as a trustee and have then died for anyone to have had much experience with how they administer trusts. But I have no reason to think they couldn't do this.

You should be able to get someone in their trust department to return your call.

Conduit trusts rarely make sense since over time all of the assets will be thrown into the beneficiary's estate and exposed to the beneficiary's creditors and spouses.

It's generally better not to mandate distributions or to mandate termination of a trust at a specified age.

Post Reply