LegalJourney Blog When you should establish an IRA as a trust

Financial-Planning.com published an article by Ed Slott entitled, "When you should establish an IRA as a trust" (May 31, 2017). Provided below is a brief summary of the article published at Financial-Planning.com: When you should establish an IRA as a trustA trusteed IRA offers provisions beyond a custodial plan, but is it a good strategy for clients? The answer depends on several factors, including how much control - or not - the client wants their beneficiaries to have.With a trusteed IRA, a financial organization adds trust terms and language to the plan. As a trusteed IRA is, in essence, a conduit trust; the trustee must pay out the annual required minimum distribution to beneficiaries.Under the tax code, an IRA can be established as a trust or custodial account. With a trusteed IRA, a financial organization adds trust terms and language to the plan. Thus, the IRA itself becomes a trust, with the financial organization acting as the trustee.To continue more in depth on this issue, please continue to read the full article "When you should establish an IRA as a trust" from Financial-Planning.com