IRA Trust Overview

Estate Planning Attorney

Retirement benefits (such as IRAs) are a huge component of a person's estate. Many people have been told, however, that they shouldn't make a Trust the beneficiary of their IRA. Instead, they have been told that if they make their Trust the beneficiary (instead of their children) their children will lose the tax benefits. This presents variety of problems:

  • What do parents do to protect their IRAs from their kids frivolously spending their inheritance?
  • What do parents do to help ensure that a child's divorce doesn't derail their plans to keep their child's inheritance in the family?
  • How do parents protect their children from having their inheritance swallowed up by creditors or a future lawsuit?

For some, the answer may be a Stand-Alone IRA Trust. The Stand-Alone IRA Trust allows a person to have their cake and eat it too.

In the past, if you named a trust as the beneficiary of your IRA instead of a person, you could get the protection afforded by the trust - but the beneficiaries of the trust would lose the tax benefits. Today, if a person uses a properly drafted Stand-Alone IRA Trust, they can get the asset protection afforded by a trust, and the tax benefits generally associated with leaving the assets to an individual.

What can a Fairfield County estate planning lawyer do for you?

Call our office to schedule an appointment to discuss a Stand-alone IRA trust. This tool may be of assistance to you, but you should discuss it in the context of your specific circumstances with a qualified CT trusts attorney before making the decision. We serve clients in Greenwich, Stamford, Westport, Fairfield, Trumbull, and throughout Fairfield County and New Haven County.

Contact an estate planning attorney at my firm for a consultation.