Two Special Trusts to “Stretch” IRAs

After the SECURE Act, most IRA beneficiaries are required to withdraw the balance of the account within 10 years after the owner’s death. The details of those rules can be found in Brent’s prior post here. In that post, Brent also introduced the concept of using an Accumulation Trust (i.e. a trust as beneficiary of an IRA that (1) can accumulate withdrawals from the IRA and (2) has non-individual beneficiaries) as a way to stretch the IRA distributions after the owner’s death beyond the 10-year requirement. Another option to stretch those payments would be to name a charitable remainder trust. Each has its advantages and disadvantages, which are discussed here.

Brent Nelson assists U.S. and international individuals, families and financial institutions in tax, estate planning and family business matters. In addition, he frequently speaks and writes on estate and tax developments. Brent develops estate plans in a wide variety of circumstances, from basic estate plans to complex plans for high net worth individuals and families. He also assists them with related business succession and charitable goals. For high net worth clients, he uses sophisticated tax planning techniques involving irrevocable trusts, life insurance, private foundations and family limited partnerships. Other lawyers often engage Brent to help their clients in complex planning. Read more.

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