Natalie Choate Quoted on IRA and Beneficiaries in The Wall Street JournalPrint PDF
Natalie Choate, a member of the firm’s Private Client Department, discussed tools available to parents when naming their adult children as beneficiaries of an IRA in The Wall Street Journal. In the article, “Should New Retirees Travel a Lot? We Did,” Natalie pointed out that some IRA providers offer a “trusteed IRA,” where your IRA is, itself, in the form of a trust. Another option to create appropriate spendthrift provisions would be to leave your IRA to a trust that qualifies as a “conduit trust” under Internal Revenue Service rules. Both tools, Natalie continued, can help protect adult children from themselves. Both will ensure that each child takes out, each year, only the minimum distribution required by law, and both are entitled to use the child’s life expectancy to measure those required distributions.