Making The Complex

What Is An IRA Trust?

An IRA trust is a type of revocable living trust that can function as the beneficiary of your IRA after you die. This type of trust is known by various names, including IRA living trust, IRA inheritance trust, IRA inheritor’s trust, standalone retirement trust or IRA stretch trust.

In Louisiana, if you have at least one individual retirement account (IRA), you might consider creating an IRA trust for the purpose of holding your IRA funds for your loved ones’ benefit after your death.

At Nicaud & Sunseri Law Firm, LLC, our Louisiana estate planning lawyers can help you create an IRA trust that is designed to meet your specific needs and those of your family. Contact us today to set up a consultation regarding your estate planning options. With offices in Metairie and Mandeville, we advise and represent clients on the Southshore and Northshore.

You Can Design An IRA Trust To Achieve Specific Goals

When you create a revocable living trust to hold your IRA after your death, the trust agreement can include subtrusts that are designed to benefit specific beneficiaries, including your spouse if you so choose. Generally, your IRA beneficiary forms should list the specific subtrusts as beneficiaries.

Examples of subtrusts within the IRA trust might include:

  • A conduit trust, which involves paying the required minimum distributions to the beneficiary when the trust receives each distribution
  • An accumulation trust, which involves using the funds for the benefit of the beneficiary at the trustee’s discretion
  • A dynasty trust, which can be set up so it provides for the beneficiary for many years to come

Note: Because an IRA trust is typically a revocable living trust, that means you can change the terms of the subtrusts before your death.

If you have a loved one with special needs, please see our overview of special needs trusts in Louisiana.

Learn More. Contact Us Today.

To understand your full range of options, you should speak with an estate planning attorney at Nicaud & Sunseri Law Firm, LLC. To set up a consultation, please call 504-662-9596 or 985-218-0494, or complete our contact form.