Orange County California

Trust Attorneys


Orange County Estate Planning Attorney James F. Roberts Discusses some key factors to consider when creating or modifying your estate plan and creating an IRA Sub-Trust.

Using an IRA Sub-Trust to Benefit Multiple Generations

Many of our clients worry that if they leave their children as beneficiaries to their IRA, that if their child passes away while still receiving distributions from the IRA, that their child’s spouse by law becomes the beneficiary of that IRA. They are concerned that unless that spouse waives their rights to the IRA, it will not go to their grandchildren at the death of their child as they planned. So ultimately the fear is that the son-in-law or daughter-in-law may end up being the beneficiary of their IRA if their son or daughter has passed away.

Most people want the IRA that they left to their children to go on to their grandchildren, rather than to the spouse.

By leaving the IRA in an IRA Sub- trust you can choose by stating clearly in an IRA sub-trust that you want it to go to my son or daughter for their lifetime, but at their death I want it to go to my grandchildren. This way you can control where the funds go and not the son or daughter. This is another reason why many people opt to make the Trust the beneficiary of the IRA.

Contact us today and set up an appointment. We offer a many different resources and pamphlets on the subject of creating, updating and implementing estate plans. We also offer a regularly scheduled seminar in our office to help people determine what the best options are for them in their estate planning needs. We hope you sign up for one of our seminars to help you find your best options.

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