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RayAnswers
RayAnswers, Attorney
Category: Estate Law
Satisfied Customers: 36967
Experience:  Texas lawyer for 30 years in Estate law
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I have 3 traditional IRA's, each IRA has 2 beneficiary's at

Customer Question

I have 3 traditional IRA's, each IRA has 2 beneficiary's at 50% each (6 beneficiary's total). I understand the RMD's from each IRA will be based on the oldest age of the assigned beneficiary of that IRA. I would like the Trustee to take the annual RMD's and deposit them into a single Account. From that Account the Trustee would distribute an annual payout based on the instructions of the Trust. Is there a specific type of Trust that would accomplish this? Thank you.
Submitted: 8 months ago.
Category: Estate Law
Expert:  RayAnswers replied 8 months ago.

Hi and welcome to JA. Ray here to help you today.

You would just set up the trust and name the trust as beneficiary.You would set the terms for distribution in the trust itself.You will need a local trust lawyer to set up the trust and then have the institution set up the trust as beneficiary.That way the funds go to the trust when you decease here.

You would apply for an EIN number for the trust and all reporting is done through the trust.

I appreciate the chance to help you today.

Expert:  RayAnswers replied 8 months ago.

This can be done with a regular living trust funded to your needs.

Customer: replied 8 months ago.
I do not want to name the Trust as beneficiary to the IRA because I lose the 'stretch' benefit of using the age of the beneficiary's. I'm looking for strategy on how to roll the individual beneficiary RMD's into a single pool of funds that can be paid out based on the Trust directions. What type of Trust application would accomplish that? I'm attaching a picture that may help.
Customer: replied 8 months ago.
I am naming individuals as beneficiary's to the IRA, not the Trust. If I name the Trust as beneficiary to the IRA, RMD's must be taken in 5 years and I lose the 'stretch' benefit of using the age of the beneficiary's. I was looking for strategy on how to roll the individual beneficiary RMD's into a single pool of funds that can be paid out based on the Trust directions. Specifically what type of Trust structure would accomplish that.
Expert:  RayAnswers replied 8 months ago.

I don'[t honestly think that is possible.You can name individuals then it passes directly to them or name the trust and trust holds the funds as per the trust.But you have to pick one here .You could have the IRAs pay to the trust as a possibility.

Thanks again.

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