{"id":16014,"date":"2014-12-10T17:26:18","date_gmt":"2014-12-10T22:26:18","guid":{"rendered":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary.html"},"modified":"2014-12-10T17:26:18","modified_gmt":"2014-12-10T22:26:18","slug":"a-trust-as-ira-beneficiary","status":"publish","type":"post","link":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/","title":{"rendered":"Business Report: A Trust As IRA Beneficiary?"},"content":{"rendered":"
\n
\"debra\n<\/div>\n
Debra Verni, principal of the Herzog Law Firm in Saratoga Springs\n<\/div>\n<\/div>\n

BY DEBRA VERNI<\/p>\n

Do you have a good reason to name a trust as
\nbeneficiary of your IRA?<\/p>\n

Do you have a child with a disability? Is this
\na second marriage and you want to make sure
\nyour kids get their fair share? Do you have a
\nbeneficiary that is a minor or can’t be trusted
\nwith money? These are all good reasons to name
\na trust as the beneficiary of your IRA.<\/p>\n

Right now, you are thinking, “I have a trust,
\nwhy don’t I just name my current trust as
\nbeneficiary?” Stop. You should not make your
\nirrevocable or revocable trust for that matter
\nthe beneficiary of your IRA. Because of potential
\nincome tax implications, a separate trust must
\nbe created to receive your retirement benefits. <\/em><\/p>\n

A separate trust for your IRA benefits can be
\ncreated in three ways.<\/p>\n

1. As a stand alone trust created while you are
\nalive to receive your IRA benefits when you die,
\n2. A subtrust of a revocable trust you create
\nwhile you are alive that holds the retirement
\nasset as well as others, or
\n3. A subtrust of a trust created by a will.<\/p>\n

Leaving an IRA to a trust is different than
\nputting other assets into a trust after death.
\nThere is no quick fix for errors in beneficiary
\ndesignations for retirement accounts. You
\nshould always seek legal advice from an attorney
\nthat understands complicated inherited
\nIRAs.<\/p>\n

A stand alone revocable IRA trust established
\nduring your lifetime that is funded at your death
\nmakes amendments easier and increases the
\nlikelihood that your trustee will understand the
\ncomplexities of administering the trust after
\nyour death. Separate share trusts can also be
\nestablished in the IRA trust for each of your
\nchildren and or beneficiaries.<\/p>\n

The IRA will be stretched over the individual
\nlife expectancies of each beneficiary and most
\nimportantly, if the beneficiary dies before the
\nIRA is exhausted you can direct where the
\nmoney will go after your beneficiary’s death.
\nYour beneficiary cannot control who inherits the
\nbalance of the IRA after their death.<\/p>\n

A classic example is mom leaves a $500,000
\nIRA to her son, outright and their IRA plan permits
\nthem to name successor beneficiaries. The
\nson then moves it into a stretch IRA, stretches it
\nover his life expectancy and starts taking yearly
\ndistributions. Her son dies a few years later leaving
\nthe IRA to his wife who then remarries and
\nleaves it to the new husband. What about your
\ngrandkids? If mom left the $500,000 IRA to her
\nson in an IRA trust, at her son’s death the trust
\ndocument directs where the money goes, not to
\nthe wife, but to the grandchildren.<\/p>\n

IRA trusts also have potential for protection
\nagainst divorce as well as creditor protection
\nand bloodline protection.<\/p>\n

Verni is a principal of the Herzog Law Firm
\nin Saratoga Springs.<\/em><\/p>\n

Photo Courtesy Herzog Law Firm<\/p>\n","protected":false},"excerpt":{"rendered":"

Debra Verni, principal of the Herzog Law Firm in Saratoga Springs BY DEBRA VERNI Do you have a good reason to name a trust as beneficiary of your IRA? Do you have a child with a disability? Is this…<\/p>\n","protected":false},"author":121,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[58,70],"class_list":["post-16014","post","type-post","status-publish","format-standard","hentry","category-business-reports","tag-business-reports","tag-financial"],"yoast_head":"\r\nBusiness Report: A Trust As IRA Beneficiary? - Saratoga Business Journal<\/title>\r\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\r\n<link rel=\"canonical\" href=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/\" \/>\r\n<meta property=\"og:locale\" content=\"en_US\" \/>\r\n<meta property=\"og:type\" content=\"article\" \/>\r\n<meta property=\"og:title\" content=\"Business Report: A Trust As IRA Beneficiary? - Saratoga Business Journal\" \/>\r\n<meta property=\"og:description\" content=\"Debra Verni, principal of the Herzog Law Firm in Saratoga Springs BY DEBRA VERNI Do you have a good reason to name a trust as beneficiary of your IRA? Do you have a child with a disability? Is this...\" \/>\r\n<meta property=\"og:url\" content=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/\" \/>\r\n<meta property=\"og:site_name\" content=\"Saratoga Business Journal\" \/>\r\n<meta property=\"article:published_time\" content=\"2014-12-10T22:26:18+00:00\" \/>\r\n<meta property=\"og:image\" content=\"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg\" \/>\r\n<meta name=\"author\" content=\"Saratoga Business Journal\" \/>\r\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\r\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Saratoga Business Journal\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\r\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/\"},\"author\":{\"name\":\"Saratoga Business Journal\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/#\\\/schema\\\/person\\\/ddf5fd6df8c43505ff3a5fb93e64871d\"},\"headline\":\"Business Report: A Trust As IRA Beneficiary?\",\"datePublished\":\"2014-12-10T22:26:18+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/\"},\"wordCount\":497,\"image\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/48\\\/2014\\\/12\\\/debra20verni.jpg\",\"keywords\":[\"Business Reports\",\"Financial\"],\"articleSection\":[\"Business Reports\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/\",\"url\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/\",\"name\":\"Business Report: A Trust As IRA Beneficiary? - Saratoga Business Journal\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#primaryimage\"},\"image\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/48\\\/2014\\\/12\\\/debra20verni.jpg\",\"datePublished\":\"2014-12-10T22:26:18+00:00\",\"author\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/#\\\/schema\\\/person\\\/ddf5fd6df8c43505ff3a5fb93e64871d\"},\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#primaryimage\",\"url\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/48\\\/2014\\\/12\\\/debra20verni.jpg\",\"contentUrl\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/wp-content\\\/uploads\\\/sites\\\/48\\\/2014\\\/12\\\/debra20verni.jpg\",\"width\":725,\"height\":897,\"caption\":\"Debra A. Verni, Esq., senior counsel, Rowlands, LeBrou, & Griesmer PPLC. Courtesy Rowlands, LeBrou, & Griesmer PPLC.\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/2014\\\/12\\\/a-trust-as-ira-beneficiary\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Business Report: A Trust As IRA Beneficiary?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/#website\",\"url\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/\",\"name\":\"Saratoga Business Journal\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/#\\\/schema\\\/person\\\/ddf5fd6df8c43505ff3a5fb93e64871d\",\"name\":\"Saratoga Business Journal\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g\",\"url\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g\",\"contentUrl\":\"https:\\\/\\\/secure.gravatar.com\\\/avatar\\\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g\",\"caption\":\"Saratoga Business Journal\"},\"sameAs\":[\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/\"],\"url\":\"https:\\\/\\\/www.saratoga.com\\\/saratogabusinessjournal\\\/author\\\/saratogabusinessjournal\\\/\"}]}<\/script>\r\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Business Report: A Trust As IRA Beneficiary? - Saratoga Business Journal","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/","og_locale":"en_US","og_type":"article","og_title":"Business Report: A Trust As IRA Beneficiary? - Saratoga Business Journal","og_description":"Debra Verni, principal of the Herzog Law Firm in Saratoga Springs BY DEBRA VERNI Do you have a good reason to name a trust as beneficiary of your IRA? Do you have a child with a disability? Is this...","og_url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/","og_site_name":"Saratoga Business Journal","article_published_time":"2014-12-10T22:26:18+00:00","og_image":[{"url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg","type":"","width":"","height":""}],"author":"Saratoga Business Journal","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Saratoga Business Journal","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#article","isPartOf":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/"},"author":{"name":"Saratoga Business Journal","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#\/schema\/person\/ddf5fd6df8c43505ff3a5fb93e64871d"},"headline":"Business Report: A Trust As IRA Beneficiary?","datePublished":"2014-12-10T22:26:18+00:00","mainEntityOfPage":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/"},"wordCount":497,"image":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#primaryimage"},"thumbnailUrl":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg","keywords":["Business Reports","Financial"],"articleSection":["Business Reports"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/","url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/","name":"Business Report: A Trust As IRA Beneficiary? - Saratoga Business Journal","isPartOf":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#primaryimage"},"image":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#primaryimage"},"thumbnailUrl":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg","datePublished":"2014-12-10T22:26:18+00:00","author":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#\/schema\/person\/ddf5fd6df8c43505ff3a5fb93e64871d"},"breadcrumb":{"@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#primaryimage","url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg","contentUrl":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-content\/uploads\/sites\/48\/2014\/12\/debra20verni.jpg","width":725,"height":897,"caption":"Debra A. Verni, Esq., senior counsel, Rowlands, LeBrou, & Griesmer PPLC. Courtesy Rowlands, LeBrou, & Griesmer PPLC."},{"@type":"BreadcrumbList","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/2014\/12\/a-trust-as-ira-beneficiary\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/"},{"@type":"ListItem","position":2,"name":"Business Report: A Trust As IRA Beneficiary?"}]},{"@type":"WebSite","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#website","url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/","name":"Saratoga Business Journal","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/#\/schema\/person\/ddf5fd6df8c43505ff3a5fb93e64871d","name":"Saratoga Business Journal","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1ba402a238e359969bec40757b031230a02e1b4065fbc669f6b28ebacf90f75f?s=96&d=mm&r=g","caption":"Saratoga Business Journal"},"sameAs":["https:\/\/www.saratoga.com\/saratogabusinessjournal\/"],"url":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/author\/saratogabusinessjournal\/"}]}},"_links":{"self":[{"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/posts\/16014","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/users\/121"}],"replies":[{"embeddable":true,"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/comments?post=16014"}],"version-history":[{"count":0,"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/posts\/16014\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/media?parent=16014"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/categories?post=16014"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.saratoga.com\/saratogabusinessjournal\/wp-json\/wp\/v2\/tags?post=16014"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}