Q: In your IRA Inheritance Trust® forms, you have a section named “Distribution During Lifetime of Trustor”, but this trust is not funded until the death of the Trustor. Is such section necessary and if so, why would this trust have funds in it prior to Trustor’s death?
A: The “Distribution During Lifetime of Trustor” provisions are included in our legal form since it is possible, although unlikely, that one would transfer their IRA to the IRA Trust and pay taxes on the transfer. It is included in the trust in the remote case that one would do that.
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