LEGAL GUIDE
Written by attorney J Mack Shively | Apr 30, 2014

DRAFTING A SEE-THROUGH TRUST FOR AN IRA OR 401(k)

Every estate with an IRA or 401(k) is in effect a taxable estate because if the beneficiary designation is omitted or done incorrectly, and the decedent’s fund goes to the estate, you have lost the stretch payout and dramatically accelerated income taxes.

Additional resources provided by the author

Natalie Choate, Life and Death Planning for Retirement Benefits (7th Ed. 2011) http://ataxplan.com/ Natalie Choate, Making Retirement Benefits Payable to Trusts http://ataxplan.com/order/downloads.cfm and http://www.ctnaela.org/wp-content/uploads/2013/04/Part-III-TrustAsBene2013.pdf Julia Nickerson, “Leaving Your IRA to a Disabled Person” (The Wealth Counsel, July 2013) http://www.wealthcounsel.com/newsletter/july2013/Julia-Nickerson-Leaving-Your-IRA-to-a-Disabled-Person/ Valerie J. Vollmar, “Revised Will and Trust Forms” (OSB Planning the Basic Estate 2006) Donna R. Meyer and Valerie J. Vollmar, Elder Law, Chapter 9, “Using Trusts” Form 9-6 “Testamentary Special Needs Trust for Child” (OSB 2000 edition with 2005 supp.) Warren C. Deras, “Will Clauses--Form 1” (OSB Basic Estate Planning and Administration 2010) Cynthia L. Barrett, “Special Needs Trust Administration” (OSB Special Needs Trusts 2011) Michael J. Edgel and Melanie E. Marmion, “Special Needs Trust Basics: Testamentary and Payback Trusts” (OSB Special Needs Trusts 2011) Treas. Regs. §§1.401(a)(9)-0 to -9 AKA 26 C.F.R §§1.401(a)(9)-0 to -9 http://www.gpo.gov/fdsys/browse/collectionCfr.action?collectionCode=CFR

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