JAA Posted January 8, 2020 Share Posted January 8, 2020 We have seen many circumstances where an employer has an existing rabbi trust and now has a 2nd or 3rd deferred compensation plan that they want to add an account for under the existing rabbi trust. Is this an acceptable amendment? Would consent of the existing beneficiaries be required? Link to comment Share on other sites More sharing options...
Luke Bailey Posted January 15, 2020 Share Posted January 15, 2020 I think you can do it, if the bank is willing. You would want to have some way of dividing the assets, obviously, e.g. if they are all invested in the same way it would be proportional, similar to a master trust for separate, but related, qualified DB plans. Luke Bailey Senior Counsel Clark Hill PLC 214-651-4572 (O) | LBailey@clarkhill.com 2600 Dallas Parkway Suite 600 Frisco, TX 75034 Link to comment Share on other sites More sharing options...
XTitan Posted January 15, 2020 Share Posted January 15, 2020 It really depends on the terms of the trust document. I usually see sub-trusts for each plan where assets can be reallocated only when there are excess. I haven't seen beneficiary consent to do this, but I have seen trustees be concerned about irrevocability. - There are two types of people in the world: those who can extrapolate from incomplete data sets... Link to comment Share on other sites More sharing options...
Recommended Posts
Create an account or sign in to comment
You need to be a member in order to leave a comment
Create an account
Sign up for a new account in our community. It's easy!
Register a new accountSign in
Already have an account? Sign in here.
Sign In Now