BarbriSFCourseDetails

Course Details

This CLE/CPE course will provide estate planning counsel with detailed guidance on drafting "see-through" trusts that qualify as IRA beneficiaries under IRS regulations. The panel will explain provisions governing both "conduit trusts" and "accumulation trusts" and offer sample language for both trusts that will meet IRS standards.

Faculty

Description

A valuable tool for protecting IRA assets as a component of estate planning is using a trust as an IRA beneficiary. These "see-through" trusts can provide useful flexibility in a comprehensive estate plan and carry income tax consequences and stringent IRS requirements for qualification. Estate planning counsel must know the detailed IRS rules in drafting these "see-through" trusts to meet Required Minimum Distribution (RMD) and income accumulation requirements.

IRA beneficiary trusts generally come in two types: "conduit trusts" and "accumulation trusts." Compliance with specific requirements enable conduit trusts to calculate and distribute RMDs over the lifetime of eligible designated beneficiaries. Notably, IRA beneficiary trusts of any type must be valid under state law, but should also contain specific language and provisions that qualify the trust for see-through treatment.

Whether estate planning counsel is drafting a trust to function as a conduit or an accumulation trust, practitioners must know the rules and required language to avoid severe tax consequences.

Listen as our experienced panel provides detailed guidance, including sample language, to help you master the intricacies of drafting see-through IRA beneficiary trusts.

Outline

  1. Trusts as beneficiaries of an IRA
  2. Conduit vs. accumulation trust
  3. DNI impact and considerations
  4. Drafting provisions for conduit trusts
  5. Drafting provisions for accumulation trusts

Benefits

The panel will review these and other relevant issues:

  • Impact of the SECURE Act, SECURE 2.0, and other regulations
  • Income tax considerations in utilizing a see-through trust
  • What provisions must be included in trust language for a trust to qualify for see-through treatment as either a conduit trust or an accumulation trust?
  • Factors to consider when drafting a QTIP trust as an IRA beneficiary trust