Save this trust's exclusion for your nonspousal heirs. If the IRA account is your largest asset, then this trust may be a good idea. But if you have other big accounts, the IRA may not be the best asset to use in the bypass trust, notes Nissenbaum. Let's say you have a large stock account as well. As Usual, There Are Some Drawbacks Legal costs and cumbersome paperwork are some of the side effects of setting up a trust.
Trusts also have the highest tax rates.
This stuff is exceptionally technical, so make sure your advisers are on the ball. What's imperative is that you try to gain a thorough understanding of all your IRA beneficiary options. Remember, if you have any more questions, please send them to our taxforum . Read our conflicts and disclosure policy . Order reprints of TSC articles.