Using trusts as Roth IRA beneficiary

[Guest C Scott]

Are the rules for making a trust a designated beneficiary for a Roth IRA the same as the rules for a traditional IRA under Prop Regs 1.401(a)(9)? Can a revocable living trust serve as a beneficiary?

[Guest]

It seems to me it's still an IRA so the rules might apply until something else comes out.

[Bruce Steiner]

There are lots of complexities (many of which have required PLRs) to having a revocable trust as beneficiary? Why do you want to name a revocable trust as beneficiary? (Is there some special reason you need or want a revocable trust in the first place? Revocable trusts do not save taxes, and in most cases they do not significantly reduce estate administration expenses.)

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Bruce Steiner, attorney

(212) 986-6000 (NY office)

(201) 862-1080 (NJ office)

also admitted in FL

[Bruce Steiner]

There are lots of complexities (many of which have required PLRs) to having a revocable trust as beneficiary? Why do you want to name a revocable trust as beneficiary? (Is there some special reason you need or want a revocable trust in the first place? Revocable trusts do not save taxes, and in most cases they do not significantly reduce estate administration expenses.)

------------------

Bruce Steiner, attorney

(212) 986-6000 (NY office)

(201) 862-1080 (NJ office)

also admitted in FL