The maximum divisors are included in Appendix I . Under the MDIB rule, a nonspouse calculation beneficiary can be a maximum of 10 years younger than you. This allows for the most flexibility and continued tax deferral for your spouse. The calculation beneficiary must be the primary beneficiary with the shortest life expectancy. Naming a Trust as a Beneficiary Instead of naming individual beneficiaries, it may make sense to name a trust as primary or contingent beneficiary.
Trusts have many uses in estate planning.
They can protect assets against creditors, limit distributions to young children, or provide professional asset management. If you have a trust and would like to name a calculation beneficiary, the beneficiary with the shortest life expectancy named in the trust would be the calculation beneficiary. His or her life expectancy would be used in the calculation of your payments. A trust's beneficiary cannot be named as calculation beneficiary if it does not fulfill all of the requirements listed above.