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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Estate Law
Satisfied Customers: 41221
Experience:  JA Mentor. I run my own practice that specializes in Estate Preparation and Administration
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I want to put my Roth IRA into an irrevocable Trust so these

Customer Question

I want to put my Roth IRA into an irrevocable Trust so these assets will be protected if I need Medicaid. I am aware of the 5 year look back period in New York State and I know I will not need these assets later. I want to protect them as a legacy for my children. I am a resident of New York State.
Is there a downside to this strategy?
Submitted: 1 year ago.
Category: Estate Law
Expert:  Dimitry Esquire replied 1 year ago.

Thank you for your question. Please permit me to assist you with your concerns.

The biggest downsides are accessibility of funds and changes in laws. By accessibility I mean that while you are sure you do not need to those assets, things may change, and if those assets are in trust, you would have greater difficulty in getting into them. By 'changes in laws' I mean that while currently there is a Roth option, there is no guarantee that there won't be a better IRA option until retirement which may create a net loss for you. And, if a trust is 'irrevocable', it is closed and you cannot add or place more assets within it once it is closed, so if you are looking at it as a potential flexible option, it might not work that well, but if you are simply seeking to treat this as a proverbial 'lock box', then this is a very valid and reasonable option.


Dimitry, Esq.

Customer: replied 1 year ago.
I recognize the limitations, but are you saying I can transfer my Roth IRA into an irrevocable Trust, make the Trust the owner and beneficiary of my Roth IRA??
Expert:  Dimitry Esquire replied 1 year ago.


You can transfer the Roth IRA proceeds into a trust. The Trust can then designate beneficiaries for the Roth, or designate itself as the beneficiary.


Dimitry, Esq.

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