June 1, 2007, Newsletter Issue #49: Beneficiary Trusts

Tip of the Week

If you want to make a Trust the beneficiary of your Individual Retirement Account (IRA) you'll want to make certain that it is a qualified trust so the trust can take advantage of the life expectancy option. There are four principal requirements that insure the validity of a trust. - It must be a valid trust under state law. - The trust must become irrevocable upon the death of the owner of the retirement account (you). - The beneficiaries of the trust must be clearly identifiable. - The IRA trustee or custodian of the trust must have a complete copy of the trust agreement, along with any amendments that may have been made. If all of these conditions have been met, then the life expectancy option, based on the life expectancy of the oldest beneficiary of the trust, can be used in making distributions to all of the trust beneficiaries.

About LifeTips

Now one of the top on-line publishers in the world, LifeTips offers tips to millions of monthly visitors. Our mission mission is to make your life smarter, better, faster and wiser. Expert writers earn dough for what they know. And exclusive sponsors in each niche topic help us make-it-all happen.

Not finding the advice and tips you need on this Retirement Planning Tip Site? Request a Tip Now!


Guru Spotlight
Joe Wallace