An IRA Trust is a stand-alone trust that becomes the main beneficiary of an IRA. Since the trust is the beneficiary, the IRA owner can specify how the IRA is distributed. Essentially, it prevents beneficiaries from immediately cashing out the IRA and specifies how much can be withdrawn each year by each named beneficiary. SBLS is one of the only firms in the Metro St. Louis area providing this tool at a reasonable cost.
An IRA Trust provides inherited benefits over each beneficiary's lifetime, allowing the IRA assets to continue growing - tax deferred. This type of trust is helpful for family members who are under the age of 18, have difficulty managing money or those who struggle with addiction or creditor issues. Also, if you have a child or grandchild with a special need, an IRA Trust can be gifted without affecting government benefits. Plus, an IRA Trust is NOT a financial asset available for division in a divorce.
Watch our IRA Trust video on YouTube.