The following article was written by Charles (Chuck) Rubin for JDsupra.com. It details a new estate planning technique approved by the IRS that may prove useful to individuals in second marriages.
A common issue in planning for marriages with prior children is how to provide for the surviving spouse, while also making provision for children of a prior marriage or relationship. A regularly used planning arrangement is to designate as successor owner at death of the original owner a marital trust that provides for assets to be expended for the surviving spouse during his or her lifetime, with a remainder to the children and lineal descendants of the first spouse to die. This avoids the problem of leaving the assets outright to the surviving spouse, who then can leave the assets to other beneficiaries at his or her death.
If the asset at issue is an IRA or qualified plan interest, the owning spouse may have similar concerns. However, income tax issues complicate the planning. For income tax planning purposes, it is usually desirable that the owning spouse have the option to “stretch” the payouts over the life expectancy of the surviving spouse (or of the decedent spouse) and thus defer income taxes by having the beneficiary be a “qualified beneficiary” of the IRA/qualified plan assets. This can be done via an outright beneficiary designation to the surviving spouse, but presents the same issues with prior children of the decedent spouse as discussed above. Unfortunately, in regard to an IRA or qualified plan asset, the use of trusts to receive the interests faces planning obstacles per the provisions of the Regulations that limit the ability to have the trust beneficiary(ies) be treated as “qualified beneficiaries.”
A recent private letter ruling confirms a fairly straightforward planning mechanism to obtain stretch status for an IRA via a trust under these circumstances. The blessed methodology is for the IRA owner’s revocable trust to be named as beneficiary of the IRA at the owner’s death. The revocable trust provides that a separate trust will be created to hold all IRA and qualified plan assets received. The spouse is named as the sole lifetime beneficiary of the trust, and the owner’s children are named as remaindermen. The IRS ruled that this arrangement passes muster under the Regulations, and the surviving spouse is treated as a qualified beneficiary of the IRA,and the sole one at that.
To reach this result, the general provisions for qualifying trust beneficiaries as qualified beneficiaries must be met. These include the requirements under section 1.401(a)(9)-4, Q&A-5: (1) the trust is valid under state law, or would be but for the fact there is no corpus; (2) the trust is irrevocable or will, by its terms, become irrevocable upon the death of the employee; (3) the beneficiaries of the trust who are beneficiaries with respect to the trust’s interest in the employee’s benefit are identifiable within the meaning of section 1.401(a)(9)-4, Q&A-1, from the trust instrument; and (4) the documentation described in section 1.401(a)(9)-4, Q&A-6, has been provided to the plan administrator. Further, for the spouse to be sole designated beneficiary, the trust must be a conduit trust – it must contain provisions requiring the immediate distribution of all retirement plan or RIA distributions by the trustee to the beneficiary.
The payment to two trusts (first the revocable trust, and then onto the separate trust for IRA/retirement plan assets), is permitted under section 1.401(a)(9)-4, Q&A-5(d). That provision states that if the beneficiary of the trust named as beneficiary of an employee’s interest is another trust, the beneficiaries of the other trust will be treated as having been designated as beneficiaries of the first trust, and thus, as having been designated by the employee under the plan for purposes of determining the distribution period under section 401(a)(9)(A)(ii), provided that the requirements of section 1.401(a)(9)-4, Q&A-5(b), are satisfied with respect to such other trust in addition to the trust named as beneficiary.
Thankfulness to my father who told me on the topic of this blog, this
webpage is genuinely awesome.
Have a look at my web page fb88 casino
Hi there! This post couldn’t be written any better! Reading through this post reminds
me of my old room mate! He always kept chatting about this.
I will forward this page to him. Pretty sure he will have a good read.
Thank you for sharing!
My brother suggested I may like this website. He was totally right.
This publish truly made my day. You cann’t imagine simply how so
much time I had spent for this information! Thank you!
Stop by my site … ไฟทินี่
Heya i’m for the first time here. I came across this board and I find It really useful & it helped me out much.
I hope to give something back and aid others like you aided me.
Review my web site – credit free
That is a really good tip especially to those fresh to the blogosphere.
Brief but very precise information… Thank you for sharing this one.
A must read post!
My web blog … 1xbetvn
Hi there! This is my first visit to your blog! We are a group of
volunteers and starting a new project in a community in the same niche.
Your blog provided us beneficial information to work on. You have done a marvellous job!
Also visit my website; royal jelly
Every weekend i used to visit this website, for the reason that i want enjoyment, as this this web
page conations genuinely fastidious funny data too.
Feel free to surf to my web-site … รับออกแบบโลโก้
I am genuinely glad to read this weblog posts which carries
lots of useful facts, thanks for providing such information.
Review my webpage :: ไฟทินี่
Informative article, totally what I needed.
Here is my web page – slot
Good replies in return of this question with genuine arguments and describing everything
about that.
my webpage :: เซรั่ม
If you want to obtain much from this article then you have to apply such techniques to your won webpage.
Feel free to visit my blog post: ออกแบบโบรชัวร์
Excellent website you have here but I was wondering if you knew of any community
forums that cover the same topics talked about in this article?
I’d really like to be a part of group where I can get advice from other
knowledgeable individuals that share the same interest.
If you have any recommendations, please let me know. Thank
you!
Also visit my blog post :: ขายเสื้อยืด
I every time spent my half an hour to read this webpage’s content everyday along with a mug of coffee.
my site casino online philippines
paroxetine order online india
canadian pharmacies that deliver to the us
can you buy zofran online
what’s the best online pharmacy
prices for plaquenil
prozac tablets 20 mg
safe canadian pharmacies
doxycycline 100 mg tablet
buy cheap propecia
prednisolone tablets 25mg australia
cost of proscar in canada
how to order viagra online in india
where to buy real viagra online
finasteride prescription usa
fluoxetine capsules brand name
prednisone 5442
ampicillin for sale
wellbutrin 125 mg
online pharmacy uk
viagra online free shipping
lasix price uk
ivermectin over the counter uk
diuretic furosemide
canadian pharmacy no scripts
cafergot
valtrex india
lasix 30 mg tablets
propecia price uk
stromectol tablets buy online
propecia mexico pharmacy
prednisone for dogs
generic zestril
how much is valtrex generic
cheapest propecia online
furosemide generic
gabapentin 3
ivermectin tablets uk
buy metformin online without a prescription
sure save pharmacy
prozac 20 mg price in india
buy viagra usa
zoloft 200 mg daily
buy generic zoloft online
prednisone 80 mg
can you buy viagra canada
average cost of lisinopril
buy disulfiram australia
express scripts com pharmacies
triamterene cream
zestril 5 mg prices
finasteride otc
bupropion generic india
generic ivermectin
plaquenil 100
For years, companies have structured their business strategies around the funnel, but not anymore
azithromycin over the counter mexico
ivermectin oral solution
buy amoxicillin from canada
zoloft 200 mg cost
can i buy valtrex over the counter
prinivil 20mg tabs
gabapentin gel
cialis tablets for sale
buy combivent
propranolol 40 mg tablet
bupropion 150 mg cost
how to buy genuine viagra online
zoloft 200 mg daily
valtrex otc drug
wellbutrin prescription coupon
zoloft 200 mg cost
where to buy valtrex generic
budesonide 6 mg
buy generic lasix online
generic for lasix
dexona 8mg tablet
wellbutrin 100 mg tablet
order neurontin
ivermectin ireland
stromectol pill for humans
where can i get azithromycin 500 mg
furosemide 40 mg over the counter
prednisolone cost
stromectol 3 mg tablet price
finasteride 1mg for sale
ivermectin cost uk
flomax 15
azithromycin 50 mg
buy zoloft generic online
generic flomax canada
flomax price canada
where can i order zithromax
furosemide uk brand name
buy online 10mg prednisolone
escrow pharmacy online
ivermectin cost canada
stromectol brand
diflucan online uk
clomid estrogen
buy stromectol online
cheapest propecia for sale
buy diflucan without a prescription
dexamethasone brand name australia
cheap zoloft 25 mg
buy clomid 100mg online
buy malegra online
buy generic proscar
zovirax cream without rx
generic tamoxifen buy
furosemide 20 mg tablet cost
flomax for kidney stones in females
seroquel pills for sale
cialis 40
buy ceftin 500mg
propecia discount
lisinopril 10 mg price in india
online pharmacy delivery dubai
albuterol prescription drug
silvitra 120mg
biaxin online
viagra mastercard
oral jelly sachets kamagra
suprax 100 mg
can you buy seroquel online
malegra 100 gel
brand name lipitor
roxithromycin 300 mg
generic malegra
azithromycin 500mg price in usa
propecia 1mg cost
cialis usa price
online pharmacy discount code
aurogra 100 uk
keflex 500mg tabs
generic zyvox price
terramycin drug
buy malegra online
doxycycline over the counter singapore
baclofen price uk
accutane medicine in india
dexamethasone 500
zestril price
suhagra tablet 50 mg
can you buy elimite cream over the counter
modafinil price canada
buy generic valtrex online
dexamethasone 1 tablet
advair diskus in europe
fildena 50 mg
zestoretic tabs
dexamethasone 0.1
trazodone drug prices
aurogra 100 mg
1g azithromycin
accutane cream india
innopran xl online
kamagra oral jelly online india
zanaflex 4mg tablet price
canadian pharmacy tadacip
metformin hcl 500 mg without prescription
ordering viagra online
prednisone tablets india
buy cafergot uk
cheapest viagra in united states
zoloft pills 50mg
fluoxetine 40 mg price
albuterol 108
buy generic valtrex cheap
anafranil generic
aurogra 100
advair 500 50 mg
antabuse online
where can i buy trental
aurogra 100 prices
trental 400 mg tab online
cost of generic synthroid
zoloft 30 mg
mexican pharmacies online drugs
can you buy viagra online safely
cialis canada 20mg
valacyclovir valtrex
buy tadacip 20 india
cheap generic india viagra
tizanidine pills 2 mg
clonidine 0.1 mg for sale
trazodone 25 mg tablet
dexamethasone 0.75
order lisinopril 20mg
trazodone 300 mg capsule
buy modafinil united states
antabuse tablets 200mg
zoloft 5mg
buy tadacip
trazodone brand name canada
valtrex cream cost
zofran cost
where to buy accutane
pharmaceuticals online australia
xenical uk cheapest
paroxetine 7.5
buy cialis canada canadian drugstore
ivermectin price usa
zestoretic 20 25 mg
citalopram 1010
toradol pill 10mg
80 mg prednisone daily
zoloft 500mg
citalopram hbr 20 mg tab
bupropion 50mg
female viagra pill buy online
buy suhagra
zanaflex 2mg tablet price
30 mg paxil
how much is viagra in usa
budesonide 80
toradol without prescription
trustworthy online pharmacy
100 mg prednisone daily
prednisolone pill
motrin 800 mg
buy advair singapore
124 mg furosemide
wellbutrin 150 mg tablet
erectafil online
diflucan tablets australia
how much is cialis 10mg
online pharmacy com
fluoxetine nz
retin a 0.05 cream for sale
albuterol cost
vermox over the counter canada
effexor 75 mg
diflucan 300 mg
compare propecia prices
prednisone 1 mg tablet
toradol brand
advair price us
diflucan capsule 50 mg
tizanidine 6 mg tablets
zithromax for sale online
celexa tablets
propecia cost south africa
dexamethasone 0.25
zestril 20 mg price canadian pharmacy
modafinil 20 mg
synthroid 15 mg
accutane 20 mg price in india
piroxicam cap 20mg
where can i buy clomid pills online
tretinoin over the counter europe
piroxicam otc
augmentin 375 cost
effexor online pharmacy
buy robaxin uk
order buspar no prescription
modafinil drug
rx pharmacy no prescription
cheap levitra pills
vardenafil over the counter
prednisolone over the counter usa
avodart best price
where to get albuterol pills
allopurinol generic
citalopram 60 mg daily
cipro for sale online
buy zoloft online europe
buy albuterol pills online
price of effexor
albuterol canada price
buy generic levitra
zanaflex 2mg tablets
pharmacy best price advair canada
accutane from mexico
cialis 20 mg best price
best clomid
buspar medication
buy clomid online fast delivery
doxycycline no prescription
brand cialis canada
how to get albuterol pills
happy family pharmacy in canada
provigil where to buy online
modafinil paypal
how to get azithromycin over the counter
buy nolvadex uk paypal
buy ventolin online usa
order effexor xr
phenergan tablets over the counter
flomax 10 mg
tretinoin cream australia
diflucan over the counter medicine
tizanidine costs
order albuterol online
dexamethasone 4 mg tablet price
diflucan 150 mg buy online uk
can i buy allopurinol over the counter uk
albendazole sale
diflucan cost canada
feldene tablet
cost of albuterol in canada
baclofen 30 mg capsule
retino gel
synthroid 150
cipro over the counter uk
how to get accutane without prescription
acyclovir discount coupon
cipro pill
dexamethasone 0 75 mg
malegra 200
tizanidine for sale
retino 0.05
buy modafinil online without prescription
pharmacy accutane
prednisolone 5mg without prescription
best nolvadex
doxycycline antibiotics
buy finasteride 1mg india
cialis online us
buying prednisolone online
buy diflucan without prescription
albuterol sulfate
retin a 0.025
effexor
propecia 1mg buy online
prednisone prednisolone
metformin online without a prescription
how much is generic valtrex
hydrochlorothiazide over the counter
clomid 50mg uk
buy atenolol uk
buy anafranil
amoxicillin brand name canada
metformin prices
acticin without prescription
metformin 500 mg tabs
where to buy elimite cream
lisinopril medicine
prednisone 20mg nz
where can you buy elimite cream
Rüyada Aileyi Kalabalık Görmek Ne Anlama Gelir?
valtrex medicine
where to get accutane online
Contradictio in adjecto — Противоречие в определении.
https://batmanapollo.ru
prednisone 2.5 mg tablet