In Conclusion
Should you name your trust as a beneficiary of your IRA? Without more information, we must resort to the quintessential estate-planning response: “It depends.”
Here’s what we do know: Naming a trust as an IRA beneficiary shouldn’t be done out of ease or convenience; rather, the decision should be intentional and based on the totality of the circumstances. For example, the option may be attractive if the beneficiaries are minors, irresponsible, or have creditor-protection issues. Otherwise, because of the complexities and limitations, naming a trust as a beneficiary may fail to adequately express the true intent of the IRA account holder.
Rockwell T. Gust IV, J.D. is a trust advisor at Plante Moran Trust, specializing in the administration of family trusts and estates.