Beneficiary Defective Irrevocable Trusts

The Secure Act changed how many clients should plan for and name beneficiaries of retirement assets.

What is the Secure Act and how did it affect the designation of beneficiaries for retirement plans and IRAs? Elimination of the lifetime stretch (payout) of IRA benefits for most beneficiaries. Exceptions for Eligible Designated…

As a general rule, a trust is a taxpayer separate and independent of its grantor and its beneficiaries and is taxed in the same manner as an individual. There are, however, certain special rules and limitations to this taxing regime. One…

The IRS has just issued PLR 200949012. Although it may not, under Code Sec. 6110(k)(3) of the Code, be cited or used as precedent, it appears correctly to conclude that a trust someone else created for its beneficiary remains a “defective”…