Questions & Answers About the IRA Inheritance Trust®

Below are a number of questions that we commonly receive about the IRA Inheritance Trust® – – from both consumers, as well as estate planning professionals.  This library of FAQ will be updated regularly, so please feel free to come back and search through the questions to find an answer.  (Last updated on December 23, 2015)


Q: Why is a standalone IRA Trust better than a revocable Living Trust?

Q: How much does an IRA Trust cost?

Q: Who should serve as Trustee of an IRA Trust?

Q: Is the IRA Trust a good option for 401K’s and other retirement plans?

Q: How does the IRA Trust offer creditor protection?

Q: Are there qualified retirement plans that do not work with the IRA Trust?

Q: For a married couple, do you draft a joint trust or separate trusts for each spouse?

Q: Can the surviving spouse change the beneficiaries of an IRA Trust after the first spouse dies?

Q: After a married IRA owner passes away, does the surviving spouse need to create another IRA Trust?

Q: Is an IRA Inheritance Trust® protected from spousal, child support and restitution judgments in California?

Q: Do you need one or two separate IRA Inheritance Trusts®?


Q: My children are responsible.  Why would I need an IRA Trust?


Q: How do I name the primary beneficiary?

Q: Are there disadvantages to designing an IRA Trust as an accumulation trust from the start?

Q: Is the undistributed income of an IRA Trust taxable to the beneficiary?

Q: Does a charity named as secondary beneficiary of a conduit trust cause any issues regarding calculations of RMD?

Q: When a spouse is named beneficiary of the IRA, would his or her life expectancy be used to calculate the RMDs for IRA Trust beneficiaries?

Q: Does asset protection still apply to the principal under a conduit trust?

Q: Would you need to prove to an IRA Custodian that a charity was paid out by 9/30 in order to have them not count for the measuring life of RMD calculations?

Q: Why is an IRA rollover a more favorable planning option over naming the spouse as a beneficiary of the IRA Trust?

Q: Why should you have a “Distribution During Lifetime of Trustor” provision in the IRA Trust?

Q: Why can a Special Co-Trustee only appoint a Trust Protector?

Q: Can a TSP account be put into an IRA Trust without there being a taxable event?

Q: Do you need to apply for an EIN for the trust and underlying sub-trusts?

Q: Are there any concerns about leaving an IRA to charity through the IRA Inheritance Trust® when there are no other heirs at law?


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