Leaving IRA assets to trusts

Provide tax-advantaged growth potential for future generations.

  • Private Wealth Management

Why should I consider leaving IRA assets to a trust?

Leaving IRA assets to a trust may be a smart choice if an IRA owner wants control over how and when the owner's designated beneficiaries receive the assets of an IRA in the future. This may be particularly important if:

  • The IRA owner wishes to limit a beneficiary's access to inherited IRA assets—such as when they're minor children, have special needs, have poor financial habits, or are in difficult marital situations.
  • The IRA owner wants their heirs to enjoy the lifetime benefits of the "stretch" provisions in most IRAs that allow assets to continue growing tax-deferred over the heirs' (and perhaps even their heirs’) lifetime.
  • The IRA owner wants to preserve assets for children from a previous marriage.

The "see-through" and "stretch" IRA trust concepts

When a properly drafted see-through trust is designated as the beneficiary of an IRA, the beneficiaries of the trust can enjoy the benefits of a stretch IRA, and the IRA's tax advantages can be stretched over the lifetime of the oldest trust beneficiary—potentially extending those tax advantages significantly beyond the life of the IRA owner.