A&I Wealth Management > Blog > Tax and Estate Planning > Should I Name My Trust as Beneficiary of my IRA

Many people ask, should I name my trust as beneficiary of my IRA? The answer is, it depends. Read this Periscope for a quick summary and click the link to learn more details, and to understand the IRS rules around inheriting an IRA*.

Advantages of Trust as Beneficiary

One big advantage of the trust as beneficiary of an IRA is that it makes it easier to change beneficiaries at any time you choose. You could make the trust the beneficiary of all of your accounts. Then, if you need to change beneficiaries later in life, you just change the trust and all accounts are changed accordingly.

A second advantage of naming the trust as beneficiary of an IRA is that you can retain control of the distributions, and the investments, after you pass away. The trustee would follow the terms of the trust and use their best judgment for any decision not explicitly stated in the trust.

Disadvantages of Trust as Beneficiary

A trust as beneficiary of an IRA has downsides for the beneficiary and the trustee. Predictably, the downsides are the converse of the benefits. Click here to read more about the advantages and disadvantages of naming a trust as the beneficiary of your IRA.

Similar information:

IRAs: Roth, Rollover, Inherited and More
Which IRA to Choose? Traditional vs Roth IRA – Differences & Which is Better Explained
SECURE Act and How it Affects Retirees

* IRA stands for individual retirement account. An IRA provides tax advantaged retirement savings.

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    About the author

    Karl Frank, Certified Financial Planner ®, MSF, MBA, MA, is the President of A&I Financial Services LLC, a local business that specializes in wealth management, insurance planning, and retirement planning. Karl cares for business owners and the businesses that care for them. Learn More about Karl.