Retirement Plan Distributions to Trusts

Loftsgard, Gary A.
July 2003
Journal of Financial Planning;Jul2003, Vol. 16 Issue 7, p64
Academic Journal
The article demonstrates how retirement planning and estate planning can be applied together wherein an integrated planning approach can make each more effective by their incorporation than if applied alone. Sweeping proposed regulations concerning the Comprehensive Retirement Security and Pension Reform Act of 2001 were issued on January 11, 2001, which had a significant impact on the minimum distribution rules for retirement plans. As a result of the new rules, plan beneficiaries may now realize a greater deferral benefit through the single-life recalculations and increased divisor numbers that equate to longer tax-deferred growth periods than previously available under the old laws. In this discussion, references to trusts are a general reference to revocable living trusts (RLT)--although not exclusively. As noted earlier, trusts must satisfy certain requirements to be deemed a designated beneficiary trust. Grantors will often name their favorite charities as beneficiaries of their trusts. Regardless of whether a qualified plan owner designates his or trust as a beneficiary of the plan, the value of the plan will be includable in his or her estate for transfer tax purposes.


Related Articles

  • Eliminating Unwanted Beneficiaries to Stretch the IRA. Steiner, Bruce D. // Journal of Retirement Planning;Sep2007, Vol. 10 Issue 5, p7 

    The article focuses on eliminating unwanted beneficiaries in order to obtain the desired stretchout of the individual retirement account (IRA) benefits. The general rule states that distributions from an IRA can be stretched out over the life expectancy of the designated beneficiary who is the...

  • Relief for non-spouse IRA beneficiaries.  // Medical Economics;2/1/2008, Vol. 85 Issue 3, p19 

    The article focuses on the report of the Tax Facts News that those will inherit an Individual Retirement Account (IRA) or qualified plan from someone other than spouse is allowed to roll those monies into an IRA in their own name in 2008 in the U.S. It is stated that in 2007, most...

  • HEART Act Provides Benefits for Employees on Active Military Duty.  // Venulex Legal Summaries;2008 Q3, Special section p1 

    The article provides information on the Heroes Earnings Assistance and Relief Tax Act of 2008 (HEART Act) signed into law by U.S. President George W. Bush on June 17. It states that the Act primarily amends the Internal Revenue Code of 1986 to provide certain benefits for military personnel and...

  • FORM: Beneficiary Worksheet 1: Individual Living Trust. Clifford, Attorney Denis // Make Your Own Living Trust (9781413309331);Feb2009, pW01 

    A worksheet for beneficiaries of Individual Living Trust. The columns of specific gifts and residuary beneficiaries are required to be filled is presented. Specific gifts column include the item of property, primary beneficiary and alternate beneficiaries. Residuary beneficiaries column include...

  • FORM 2: Basic Shared Living Trust. Clifford, Attorney Denis // Make Your Own Living Trust (9781413309331);Feb2009, pF05 

    A form which is required to be filled for opening a basic shared living trust is presented. In the beginning of the form, the name of the living trust is to be filled. The trust property section which include the property placed in the trust, the rights retained by the grantors and the character...

  • Chapter 7: PAYING BENEFITS.  // Pension Trustee's Handbook;12/1/2005, p83 

    Chapter 7 of the book �The Pension Trustee's Handbook,� 4th edition, is presented. It discusses the paying benefits of the members or the beneficiaries of pension plans. This chapter also stresses out the main point of the pension scheme, to guarantee and ensure that members get the...

  • Trustees must document decisions on death benefits.  // Employee Benefits;Jan2008, p14 

    The article presents a case study of Jeanette Wilson, who was not able to receive death benefits from her late father, R. Wilson. Wilson has specified that when he died, his pension will be divided equally to his daughter, Jeanette and three granddaughters with the total amount of £115,572....

  • Selecting a Successor Trustee -- Why the Usual Suspects May Not Be Your Best Choice. Llewellyn II, Richard E. // Probate & Property;Jan/Feb2013, Vol. 27 Issue 1, p46 

    The article offers information on the process of selecting a trustee. It states that prior trustee's relatives, friends, and professionals are generally the first choice for successor trustee. It mentions that is a corporate trustee is selected as the successor trustee, the family will deal with...

  • MedEconomics: In a nutshell … setting up trusts. Willis, Liz // GP: General Practitioner;2/19/2010, p58 

    The article offers suggestions for general practitioners (GPs) on investments and life cover assets. GPs can put their investments in various types of trusts, known as settlements. The most common are discretionary or flexible trusts which allow gifting money or assets to beneficiaries or...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics