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Should You Create a Trust to be the Beneficiary of Your IRA?
Withum Smith+Brown, PC
Dec. 7, 2016
"While placing a discretionary trust as the beneficiary of the inherited IRA allows the owner of the IRA to provide 'post mortem control' over the beneficiary's access to funds, it may not produce a good income tax result. If the Trustee, using his discretion, decides to keep the IRA distribution in the Trust, i.e. not to make a distribution to the trust beneficiary, the IRA distribution is taxed at the Trust level instead of the beneficiary level. This decision may create a much larger tax."
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