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

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

Archive