IRA Inheritance Trusts®

“Planning is bringing the future into the present so that you can do something about it now.”

- A. Lakein

IRA Inheritance Trusts®

The IRA Inheritance Trust® can be used for qualified retirement funds, including traditional IRAs and Roth IRAs. This unique and specialized trust is designed to strategically transfer, grow, and protect wealth for your heirs.

The IRA trust ensures that IRA (and other qualified retirement funds) are passed on to your heirs as a Stretch IRA. This means that payments will continue on for as long as possible if they are spaced and valued correctly. Essentially, you can create a “pension for life” for potentially multiple generations of beneficiaries. There are two types of IRA trusts, the conduit trust and the accumulation trust -- the difference between the two is how taxes on distributions are calculated.

If you have a qualified retirement fund that you want to ensure passes on to your heirs in the most carefully structured way possible, an IRA trust may be right for you. There are many advantages to an IRA trust, and our legal team is ready to help you set up a plan to maximize your benefits for your IRA beneficiaries.

IRA Inheritance Trust Planning - Top Advantages

Some of the best advantages of the IRA trust include:

  1. Stretch-Out: This guarantees that your heirs will maximize the benefits from a tax-deferred account, and you don’t have to worry that beneficiaries will damage the potential of the trust with mismanagement. This feature allows for significant growth over many years by preventing younger, less responsible beneficiaries from taking a lump sum.

  2. Asset Protection: An IRA trust shields your account from claims brought against your beneficiaries -- divorce, creditor, lawsuit, or bankruptcy. It also protects heirs who are spendthrifty or have special needs.

  3. Control from the Grave: You can set the conditions on when heirs withdraw funds and what happens upon their own deaths. You get to maintain control even far into the future and determine exactly who will receive the remainder of the trust.

For more details about IRA trusts, see our other informational page. (hyperlink to Don’t be overwhelmed by the technical aspect of this device; we can help guide you through the process to simplify it for you.

Who Should Learn More About IRA Trusts

There are a number of different reasons that you might want to consider an IRA trust. If you fit into any of these categories, or have a different reason for wanting to set up an IRA trust, contact us today for your first complimentary consultation. Here are just some of the possible reasons:

  • You have an intended beneficiary or beneficiaries who you want to provide for but are not responsible enough to manage trust funds themselves long-term

  • Your intended beneficiaries seem responsible, but are minors or do not have sufficient knowledge of how to properly manage assets to be left completely in charge of trust funds

  • You have a qualified retirement plan that is eligible to use in setting up an IRA trust

  • You are concerned about protecting IRA funds for beneficiaries from potential creditors, complications due to divorce, and lawsuit payouts

  • You think that either a conduit trust, in which taxes are taken at the beneficiary’s rate for distributions, or an accumulation trust, in which distributions are taxed at the trust’s income rate, are right for your IRA trust assets and the IRA beneficiaries

These are just some of the basics about the useful and unique IRA trust tool. Call us at 630-665-2300, or email us at to learn more about how to make an IRA trust a part of your estate plan.