DGAA bLAWg

IRAs and a Living Trust – What Every Grantor Should Know

Web Admin - Thursday, July 13, 2017

Mount Prospect wills and trusts lawyersAfter years, perhaps even decades of pouring money into your individual retirement account (IRA), it only makes sense to ensure it goes to the appropriate party if you do not live long enough to receive all the payments. Unfortunately, transferring an IRA to a living trust can be far more complex than most people realize. The following information can help you better understand how to avoid such consequences. You shall also learn where to find assistance with the process.

The Complicated Nature of IRA Accounts

Created under the Employment Retirement Income Security Act (ERISA) in 1974, IRAs were originally meant to provide employers with a way to offer affordable retirement benefits to their employees (at that time, most did not have the funds to cover a traditional pension plan). Now they are one of the most common types of retirement plans, and they can even be purchased by individuals with qualifying income and credentials.

Unfortunately, there are many rules, exclusions, limitations, and legalities involved with an IRA account – especially when it comes to the transfer or disbursement of the account. For example, IRAs can only be “owned” by the individual that started it. It cannot be transferred to a trust nor can it be owned by a business or other entity. Still, there are ways to transfer an IRA upon death. It just requires some thoughtful planning.

Transferring an IRA to a Living Trust

While one could simply name a beneficiary for their IRA account, some plan owners prefer the increased accountability of a trust. For example, if the grantor has a special needs child with their ex-wife, they may want to ensure that the funds are used to benefit the child directly. Just keep in mind that disbursement to a trust before the age of 59.5 is considered an early disbursement, which may result in an early payout penalty. As such, it is recommended that you speak with an experienced wills and trusts lawyer before naming a trust or changing the beneficiary on your IRA account. An attorney can also help ensure the right verbiage is used in your estate plan (i.e. “pass through,” “designated beneficiary,” etc.) to reduce the risk of any transfer issues.

Contact Our Mount Prospect Wills and Trusts Lawyers

Known for our creative solutions and personalized touch, the experienced Mount Prospect wills and trusts lawyers at Drost, Gilbert, Andrew & Apicella, LLC can assist you with your estate planning needs. Get started by scheduling a consultation. Call our offices at 847-934-6000 today.


About the Author: Attorney Jay Andrew is a founding partner of Drost, Gilbert, Andrew & Apicella, LLC. He is a graduate of the University of Dayton School of Law and has been practicing in estate planning, probate, trust administration, real estate law, residential/ commercial leasing, contracts, and civil litigation. Since 2005, Jay has been a Chair of the Mock Trial Committee for the Annual Northwest Suburban Bar Association High School Mock Trial Invitation which serves over 240 local Illinois students each year.



Sources: https://www.forbes.com/sites/deborahljacobs/2014/09/04/iras-and-trusts-what-you-need-to-know/#4fe760a2172b
https://www.wellsfargo.com/help/faqs/investing-ira/http://www.bankrate.com/investing/ira/naming-a-trust-as-your-ira-beneficiary/




Recent Posts


Tags

Rolling Meadows boating crash lawyer installment contracts Illinois trusts attorney consent to a search Arlington Heights wills and trusts lawyers Palatine elder law attorney Illinois estate planning attorney Schaumburg drug defense lawyer civil litigation in terrorem provision crossover accidents Illinois personal injury Inverness insurance attorney rest breaks Schaumburg estate planning lawyer fault based insurance construction accidents, personal injury, wrongful death, Arlington Heights personal injury attorneys, workers' compensation Rolling Meadows traffic law firm Illinois construction accident attorney Crystal Lake pet attorney Palatine Attorney Barrington civil litigation attorney Buffalo Grove car accident lawyer insurance agents spinal cord injury Barrington drug crime attorney insurance claim pedestrian accident Inverness estate planning lawyer Schaumburg injury lawyer Illinois employment lawyer Chicago car accident lawyer estate attorney DGAA agent Rolling Meadows business lawyer Deer Park real estate law firm estate planning lawyer wills traffic tickets Des Plaines motorcycle accident attorney jet ski accidents Schaumburg wrongful death attorney Palatine criminal defense lawyer Crystal lake insurance dispute attorney traumatic brain injury Illinois estate planning law firm employee misclassification FSLA Rolling Meadows drug defense attorney Crystal Lake bike accident lawyer boating DUI involuntary manslaughter Des Plaines real estate attorney Illinois traffic attorneys Arlington Heights wills and trusts attorney Des Plaines DUI attorney Illinois insurance claim dispute lawyers Rolling Meadows insurance dispute lawyers, insurance dispute traffic violations loopholes Colin H. Gilbert deed transfer commercial leases car accident lawyer ACA meal breaks Arlington Heights tax lawyer back injuries Buffalo Grove law firm Illinois medical malpractice claim Crystal Lake medical malpractice lawyer Crystal Lake law firm trucking accidents estate planning attorney healthcare claims insurance negligence commercial real estate Palatine personal injury lawyer Illinois personal injury lawyers insurance disputes real estate closing Arlington Heights car crash attorneys marijuana crimes attorney eluding a police officer Crystal Lake estate planning lawyer Long Grove real estate lawyer Des Plaines injury law firm nursing home negligence criminal record Schaumburg corporate attorney medical malpractice Illinois pet lawyer Rolling Meadows personal injury lawyers truck collisions blended families Buffalo Grove traffic lawyers Des Plaines drug lawyer condo Crystal Lake medical malpractice law firm Food and Drug Administration's Food Safety Modernization Act condo association Illinois personal injury attorney problem employees vacation home fines right to work Inverness real estate lawyer Rolling Meadows car accident lawyers Illinois civil litigation lawyer cell phone tower data pedestrian accidents health insurance dispute Illinois insurance attorney senior citizens estate planning, death tax, succession plans, business estate plans, Barrington estate planning lawyers estate tax employee rights medical research TBI dynasty trusts living trust Barrington boating accident attorney Arlington Heights wills and trusts attorneys pedestrian-automobile accident Palatine punch death probate claims process Joliet general practice lawyers fatal car accidents insurance claim dispute attorney Landlord Tenant Ordinance products liability Illinois mortgages Schaumburg estate planning attorney Home Sale Contingencies suspended license construction contracts Arlington Heights insurance attorney Des Plaines criminal attorney car collision owner responsibility trench injuries Illinois insurance claims lawyers subcontractor creditors Mount Prospect wills and trusts lawyers comparative negligence Rolling Meadows real estate attorney tax attorney loss of consortium pet law unpaid overtime Rolling Meadows probate lawyer Schaumburg civil litigation attorney Inverness real estate attorney Palatine real estate lawyer Illinois insurance claim dispute lawyer Chicago estate planning lawyer Affordable Care Act personal injury lawyer Deer Park traffic accident attorney Crystal Lake injury attorney Palatine workers compensation lawyer BAIID Illinois wrongful termination lawyer underinsured motorist Barrington Illinois estate planning lawyer Kenilworth estate planning lawyer preventable medical errors landlord Palatine employment lawyer financial advisors personal injury claim icy parking lots drug crimes lawyer Crystal Lake employment law attorney Buffalo Grove real estate attorney traffic accidents sexual images life insurance claims dram shop law automated cars Chicago employment lawyer hands free device Long Grove estate planning attorney Chicago lawyer Rolling Meadows employment law attorney Illinois corporate lawyer Schaumburg elder law lawyer pregnant women Barrington litigation attorney real estate attorney residential real estate Arlington Heights lawyer small business real estate zoning boating under the influence Illinois Transfer on Death Instrument llinois Real Estate Lawyers Association Rolling Meadows tax attorney Illinois bicycle safety privacy laws Illinois will lawyer food poisoning Rolling Meadows personal injury attorney car accident lawyers insurance disputes, Illinois insurance disputes, Illinois insurance dispute attorneys, denied insurance claims, Arlington Heights insurance dispute attorneys murder charges Inverness elder law lawyer Arlington Heights criminal lawyer liability criminal law spinal cord injuries Crystal Lake will lawyer Illinois LLC creation employees Deer Park DUI lawyer Barrington attorney Jay Andrew workers comp living wills drunk driving preventing accidents insurance adjusters personal injury law firm car accident Class A misdemeanor Schaumburg personal injury lawyers Crystal Lake tax lawyer Crystal Lake criminal defense attorney Detainer Actions IRA trust transfer Chicago biking tips Des Plaines collections attorney Inverness traffic law firm Barrington criminal defense lawyer Illinois defective products attorney Inverness corporate attorney hit and run accident Colin Gilbert caretaker rights Illinois employee rights attorney. texting while driving Family Medical Leave Act federal regulations for LLCs IRS Illinois rollover accident lawyers life insurance Rolling Meadows employment attorney Illinois real estate Palatine employment law lawyer Schaumburg construction accident lawyer employment law underage DUI Buffalo Grove traffic attorney Arlington Heights TBI attorney insurance claim dispute defective products lawyer defective products Illinois traffic laws liens fiduciary rule delay Long Grove estate planning attorneys Illinois probate lawyer Crystal Lake employment lawyer Illinois registered agent pedestrian injuries, pedestrian fatality Palatine drug lawyer Illinois insurance lawyer Mt Prospect Attorney Do Not Resuscitate DUI penalities Arlington Heights traffic attorney Arlington Heights employment law attorneys mass shooting driving cell phone BUI Des Plaines Traffic Lawyer manufacturing bad faith insurance claims Arlington Heights injury attorney Illinois Smoke Detector Act IRA benefits federal crimes attorney fees Rolling Meadows accident lawyer South Barrington real estate lawyer probate lawyer Arlington Heights employment attorney Palatine employment attorney living trust vs will pet bites real estate leasing digital assets, digital fiduciary, estate planning, digital content, Long Grove estate planning lawyers Inverness probate lawyer CAM Illinois insurance disputes gift tax exemption, estate planning, estate planning strategies, Illinois estate planning, South Barrington estate planning attorneys accidental death benefits capital gains tax Employment Discrimination Law Des Plaines civil attorney criminal golf accidents severance agreements license reinstatement Barrington estate planning lawyer DMV Des Plaines personal injury attorney advance healthcare directive uninsured motorist Illinois business law atorneys Super Mario DNR clemency Arlington Heights personal injury attorney Illinois boating accident lawyer personal injury, auto accident injuries, delayed injuries, serious injuries, Des Plaines personal injury attorneys Arlington Heights accident attorney Crystal Lake accident attorney appealing an insurance claim Barrington employment law attorney life insurance policy workplace sexual harassment blood alcohol content Rolling Meadows litigation lawyer Chicago traffic lawyer ken apicella cell phone accidents Illinois small business Palatine civil attorney Illinois criminal defense attorney marijuana Illinois home inspection insurance denial appeals Whistleblower Claims expungement Schaumburg traffic lawyer Rolling Meadows criminal attorney Des Plaines personal injury lawyers homestead rights elder abuse car accidents Illinois estate planning Illinois injury lawyer Illinois medical malpractice lawyers Barrington personal injury lawyer Liquor Control Act Buffalo Grove injury lawyer guardianship attorney ObamaCare Schaumburg criminal attorney trucking accident lawyers Rolling Meadows Attorney insurance dispute, insurance dispute lawyers, insurance claim denial, insurance claim delays, Rolling Meadows insurance dispute attorneys rollover accidents employment law, Illinois employment laws Palatine trusts lawyer GM ignition switches sexual harassment caregiver Illinois red light cameras Buffalo Grove medical malpractice lawyers Palatine probate lawyer real estate lawyer Crystal Lake car accident lawyer Illinois Human Rights Act Palatine insurance lawyer Arlington Heights car accident lawyer distracted driving accidents car crash injuries insurance agent negligence life insurance lawyer Buffalo Grove personal injury attorney Chicago employment attorney insurance attorney Buffalo Grove corporate attorney Palatine estate planning lawyer PTSD Schaumburg Attorney Inverness civil lawyer School Visitation Rights Act Palatine corporate law attorneys holiday statistics Illinois real estate lawyer Chicago attorney Chicago insurance claim attorneys reckless homicide denied insurance claims controlled substance Chicago insurance law firm low-ball insurance settlement Illinois attorney Rolling Meadows DUI lawyer estate planning forming a corporation in Illinois Barrington workers compensation attorney minimum wage dog bites estate plan Palatine construction attorney Crystal Lake medical malpractice attorneys overtime violations Exclusions Rolling Meadows corporate lawyer Barrington Traffic Lawyer Illinois employment laws contracts Illinois motorcycle accident lawyer Schaumburg criminal law attorney Rolling Meadows marijuana attorney Illinois law Illinois workers compensation lawyer Crystal Lake traffic lawyer drug possession Illinois employment law attorneys LLCs drug crimes Illinois jet ski accident lawyer breach of contract Schaumburg probate attorney Barrington estate planning attorney Illinois pedestrian accident attorney product liability institutional trustee head on collisions whistleblower protections revenge porn Buffalo Grove probate lawyer first degree murder insurance claim delay Des Plaines drug crimes lawyer pizza emoji POA Retaliatory Discharge Crystal Lake pedestrian accident lawyer Illinois traffic attorney child safety auto accidents murder Schaumburg employment attorney Barrington personal injury attorney Barrington business law firm insurance claim denial real estate Illinois employment law firm digital evidence mortgage Fourth of July real estate attorneys Des Plaines personal injury lawyer Rolling Meadows Traffic Lawyer foreclosure Illinois trucking safety Arlington Heights wills and trusts lawyer liability claims Illinois job attorney Arlington Heights pedestrian accidents Illinois insurance claim attorney personal injury underfunded trust murder defense insurance dispute wrongful termination, employment law, whistleblower protections, Illinois employment laws, discrimination in the workplace deadly crashes Illinois employment attorneys healthcare Palatine traffic accidents overtime pay estate planning, digital assets, Revised Uniform Fiduciary Access to Digital Assets Act, Illinois digital assets, Illinois estate planning, Deer Park workers compensation lawyer traffic deaths car crashes BAC Rolling Meadows criminal lawyer DUI Thanksgiving taxes DUI defense drugs rollover car crashes Chicago trucking accident attorney traffic laws power of attorney for healthcare operating agreements premises liability investment property IRELA Des Plaines real estate lawyer Palatine business attorney insurance claims independent contractor Long Grove estate planning Chicago will attorney, social media platforms, Illinois estate planning lawyer, Barrington criminal lawyer pay when paid contract Arlington Heights trucking lawyer license suspension wrongful termination estate planning for college students trust payments Schaumburg insurance lawyers Deer Park personal injury lawyer Des Plaines insurance attorney unfunded trust disability benefits gift taxes personal injury claims Riverwoods estate planning lawyer power of attorney Des Plaines real estate contract medical marijuana Buffalo Grove personal injury lawyer bike accident Deer Park medical malpractice attorney Des Plaines claims law firm compensatory time probate process coronavirus drug crime Rolling Meadows insurance lawyer Illinois business lawyer traffic crimes commercial leasing job lawyers Crystal Lake employment attorney FMLA workers compensation Schaumburg personal injury attorney natural gas Rolling Meadows Des Plaines accident attorney Rolling Meadows employment law attorneys Buffalo Grove insurance claim dispute lawyers construction accidents work unions Rolling Meadows medical malpractice lawyers Arlington Heights medical malpractice lawyer Schaumburg medical malpractice lawyer Des Plaines pet law attorney employment law, meal breaks, rest breaks, hotel employees, Des Plaines employment law attorneys college kids breathalyzer test trustee Des Plaines medical malpractice attorney Illinois wills and trusts Illinois workplace discrimination attorney Illinois employment law Crystal Lake personal injury lawyer digital information Barrington real estate lawyer Schaumburg estate attorney Illinois Sales Representative Act Inverness DUI lawyer privacy Policy Cancellation Crystal Lake personal injury attorney Illinois Trust Code Transfer on Death Instrument distracted driving accident victims Illinois speeding lawyer Barrington employment law firm license revocation Long Grove wills and trusts attorneys slip and fall personal injury attorney Illinois anesthesia errors insurance claim denials probate fees Illinois traffic ticket lawyer jet ski Home Remodeling Repair Act Arlington Heights Traffic Lawyer Arlington Heights personal injury lawyer Illinois employment law attorney Deer Park accident attorney employee discrimination Crystal Lake civil litigation lawyer medical malpractice, missed diagnosis, delayed diagnosis, medical mistake, Deer Creek medical malpractice lawyers car crash insurance dispute attorney changes to mortgage law Crystal Lake business law attorneys brain injury Rolling Meadows estate planning attorney Schaumburg employment law attorneys social media after death no contest clauses Arlington Heights estate planning attorney speeding Illinois driving without license business litigation startup company new real estate form workers compensation benefits home inspection lawyer landlord tenant law Self-Directed IRA Accounts dealing with problem employees denied insurance claim Illinois Probate Act of 1975 foreclosed rental property Deer Park criminal attorney modern family estate planning Illinois living will personal injury accidents Long Grove real estate attorney medical malpractice claims Chicago estate planning pain and suffering Palatine injury attorney civil rights violation Illinois workplace lawyer Schaumburg Barrington injury attorney Deer Park motorcycle accident lawyer Illinois Workers’ Compensation Commission employment attorney Buffalo Grove employment lawyer Illinois medical malpractice case Chicago will attorney Rolling Meadows traffic attorney Rolling Meadows insurance attorney motorcycle accident lawyer trusts Chicago corporate attorney traumatic brain injuries motorcycle accident Schaumburg personal injury lawyer paid sick leave Rolling Meadows insurance dispute lawyers Illinois personal injury lawyer traffic violations defense trauma after an accident comp time DUI attorney Illinois workers compensation attorney living trust benefits income distribution deducation fiduciary rule wage theft boating accidents wrongful death Palatine corporate attorney unauthorized overtime Illinois insurance dispute lawyers digital assets Barrington employment attorney South Barrington real estate attorney Illinois car accident attorney Schaumburg real estate lawyer Inverness personal injury attorney Kenilworth estate planning attorney Illinois DUI attorney Illinois collections attorney hiring employees Mount Prospect elder law attorney probate bicycle accidents elder law Illinois Wage Payment and Collection Act license rent to own real estate contracts Rolling Meadows personal injury lawyer Palatine civil litigation lawyer special needs trust Palatine traffic lawyer texting and driving Arlington Heights real estate lawyer employment lawyer wills and trusts civil litigation attorney unpaid assessment Federal Food Drug and Cosmetic Act Inverness injury lawyer Palatine law firm drunk driving statistics corporate law Arlington Heights Attorney natural gas explosion denial of life insurance Crystal Lake traffic attorney estate planning trusts Kenilworth estate planning attorneys Inverness accident lawyer employment contract traffic offenses Crystal Lake insurance lawyer employment contract, employment law, employment at-will, Deer Park employment law attorneys, contract, Buffalo Grove criminal defense lawyer probate claims insurance denials rumble strips Illinois tax attorney irrevocable trust bicycle dooring accidents Illinois traffic accident lawyer digital media accounts, estate planning, Arlington Heights estate planning attorney, sole proprietorship Mount Prospect real estate lawyer Illinois lawyer slip and fall accidents Illinois wills and trusts attorneys swimming pools internet field sobriety test Forcible Entry Des Plaines tax law firm Deer Park employment law attorney vacation home medical malpractice compensation Schaumburg car accident attorney Fair Labor Standards Act Crystal Lake car accident attorney Barrington medical malpractice lawyers medication errors Deer Park traffic lawyer Illinois medical malpractice attorney criminal defense Legal Info Attorney Ken Apicella surgical mistakes filing a medical malpractice claim Illinois elder law attorney

Archive