Legal Question in Wills and Trusts in New York

Re: with kids as beneficiaries, when does a trust come into play

It sounds like you need to discuss Estate Planning with a lawyer. You can set up a basic Trust in a Will to receive the IRA proceeds for your children. You can also set up one or more Trusts in a Will for your wife.

Please contact me for more information at (716) 856-4022. Thank you.

Re: with kids as beneficiaries, when does a trust come into play

You don't need a trust fund but if you want a trust for valid reasons you can arrange for a trust for each child.

Talk to the administrator of the IRA (bank or insurance company) and you can get some counseling and ideas.

Its just not that complex.

Re: with kids as beneficiaries, when does a trust come into play

You should be able to name your children as the beneficiaries of your IRA through your bank/brokerage institution.

However, if your children are minors, or if the IRA is a very large portion of your assets, then you may want to create a trust now or draft a will which created a trust upon your death. If either of these are the case, you should consult an estate planning attorney.

Re: with kids as beneficiaries, when does a trust come into play

Most IRA plans have a beneficiary designation. You merely have to change the current designation to your children. But, several questions: What are their ages? Do you want to make some provision for your spouse, in case income or funds are needed? While there are income tax benefits that might be realized naming specific beneficiaries to the plan, and the fact that if you make no provision for your spouse, through the IRA or otherwise, a statutory claim could be made against your estate, maybe a trust arrangement is better overall. You could arrange during your lifetime to create a living trust, fund it during your lifetime, receiving the benefits until your demise. It could then continue for your spouse, with limits and controls on use of income and/or principal and, ultimately, pass to your children. If properly drafted, the document could provide for all needs, current and future. The only downside would be the income tax consequence (a lump-sum distribution would trigger an accelleration of the deferred income tax). But, the net assets could be available to your spouse, if needed and with limitation to control spending. Additional benefits might be gained. If you need more information, contact me directly at your convenience.