Sep 30, 2015

Federal laws prohibit Individual Retirement Accounts—IRAs-- from continuing on indefinitely after the original owner’s death, which is why the IRS created RMDs, aka Required Minimum Distributions. Some owners of IRAs want to stretch out the payment to beneficiariesafter they pass, to extend the legacy or perhaps their beneficiaries are not equipped to handle the lump sum payout.

To "stretch" an IRA, investors have two viable options: 1) They can create a specialized trust that can be treated as the beneficiary or 2) they can use an annuity for their IRA funding vehicle and have the insurance company create the stretch.

If a trust is used, there are strict requirements. In Segment 2, Steve and Sinclair review the restrictions, issues, and benefits. Then in Segment 3, estate planning attorney Richard Dwornik joins the A-Team to expand on the details. Certified Financial Planner® Murray Titterington with IQ Wealtlh also joins the discussion.