Key highlights
  • Naming a trust as an IRA beneficiary provides control, creditor protection and flexibility for IRA owners
  • Trusts must follow strict IRS criteria to qualify for beneficial payout options, such as the 10-year or life expectancy rule
  • Trust structure and beneficiary type directly impact required IRA distributions and tax implications

Naming a trust as an IRA beneficiary can offer important benefits for IRA owners looking to manage wealth transfer effectively, protect loved ones and minimize taxes. However, careful consideration of trust structure, beneficiary types and distribution rules is crucial. Financial professionals should understand these rules so they can help their clients create a legacy that aligns with their wishes.

Our article explains the advantages and disadvantages of naming a trust as an IRA beneficiary. It also defines the beneficiary types: designated, eligible designated and countable. Case studies in the article illustrate the difference between conduit trusts and accumulation trusts.

Download the full article for a clarifying examination of this complex topic.
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For more information or answers to questions on trusts as a beneficiary strategy, financial professionals can contact the Advanced Consulting Group at 614-677-6500 or ADVCG@nationwide.com.
For more legacy, estate and wealth transfer planning resources, visit nationwide.com/SimplifyLegacyPlanning.