An Individual retirement account (IRA) may contain a large portion of assets that you’ve saved with your children or other loved ones in mind. When leaving your IRA to a non-spousal beneficiary, you want them to receive the funds as you intended.The problem is that the SECURE Act will force taxation of the IRA when it is passed down to your beneficiary no later than the 10th year after you pass away.Dunham Trust Company, together with your financial advisor, can assist you in passing your IRA down to beneficiaries. The Dunham Trust Company IRA Trust Trilogy® is a series of three separate trusts designed to eliminate the SECURE Act tax, replace assets lost to taxes or charity, and set guardrails for beneficiaries who need them.1. DTC IRA Charitable Remainder Trust® The DTC IRA Charitable Remainder Trust® eliminates the SECURE Act tax at the end of the 10th year by naming a Charitable Remainder Trust as the beneficiary of your IRA. Eliminating the tax provides your loved ones with more lifetime income and a charitable contribution in lieu of taxation.2. DTC IRA Replacement Trust® The DTC IRA Replacement Trust® may assist you in replacing IRA assets that were lost to taxes or given to charity, providing your loved ones with tax efficient assets. This is accomplished by utilizing an Irrevocable Life Insurance Trust, or, ILIT. It delivers tax-efficient assets free of estate tax, income tax, and capital gains tax.3. DTC IRA Special Situations Trust® The third trust in the trilogy is the DTC IRA Special Situations Trust®. This trust allows you to care for a loved one when you are no longer there by establishing guardrails for beneficiaries who may need them. This is helpful for beneficiaries who have special needs, are irresponsible with money, are affected by substance abuse or gambling, or could be subject to financial manipulation.Planning for Multiple Generations In the DTC IRA Trust Trilogy® video series, we will explore case studies of each trust type. Learn how to replace assets lost to taxation, donated to charity, or placed in a donor advised fund. You will also learn how to establish guardrails for a beneficiary affected by substance abuse, prevent the accidental disinheriting of your children, maintain benefits for a child with special needs, and more.The Dunham Trust Company IRA Trust Trilogy® allows your financial advisor to continue managing your assets, it is affordable, it avoids planning fatigue, and provides you with a deeper level of beneficiary planning.To learn more about the DTC IRA Trust Trilogy®, contact us today. Be sure to subscribe to our channel for more Dunham insights.

Disclosures:
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
Risk Associated with all three trusts in the DTC IRA Trust Trilogy®:
Current tax environments are subject to change at any time and no one can predict with certainty what Congress or the IRS may do.
Dunham Trust Company does not guarantee the investments in the DTC IRA Trust Trilogy® as investments are subject to risk and market fluctuation, including possible loss of principal. Dunham Trust Company does not guarantee that your investment objectives will be achieved.

Fees Associated with all three trusts in the DTC IRA Trust Trilogy®:
To maintain a DTC IRA Trust Trilogy® you may incur fees and expenses. Generally, there are no administrative fees associated with the DTC IRA Special Situations Trust® and DTC IRA Charitable Trust® until the IRA owner passes, at which point the trust administration fee schedule published at the time will apply.
However, the fees related to the DTC IRA Replacement Trust® will be subject to the published fee schedule at the time the trust is established.
Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc. Trust services offered through Dunham Trust Company, an affiliated Nevada Trust Company….(read more)

LEARN MORE ABOUT: IRA Accounts

TRANSFER IRA TO GOLD: Gold IRA Account

TRANSFER IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Why You Should Name a Trust as the Beneficiary of Your IRA

Choosing the beneficiary of your Individual retirement account (IRA) is an important decision that can have significant financial implications. While many individuals choose to name a family member or loved one as the beneficiary, there are situations where designating a trust as the beneficiary may be a wiser choice. Here are some reasons why you should consider naming a trust as the beneficiary of your IRA.

1. Control and Protection:
By designating a trust as the beneficiary, you retain control over how your IRA assets will be distributed after your passing. This is particularly important if you have concerns about the financial management capabilities of your beneficiaries, such as minors, individuals with disabilities, or those who may be susceptible to making poor financial decisions. Through the use of a trust, you can specify how the funds should be used and distributed, ensuring that your beneficiaries are protected and their future needs are met.

2. Asset Protection:
If your beneficiaries are facing potential creditors, lawsuits, or divorce settlements, having a trust as the beneficiary can offer an additional layer of protection. By placing your IRA assets in a trust, it can shield them from being seized or compromised in legal proceedings, safeguarding those funds for the intended beneficiaries.

3. Tax Planning:
A trust can also provide significant tax planning opportunities for your beneficiaries. By specifying the terms of the trust, you can control the timing and amount of distributions from the IRA. This allows you to manage the tax burden more effectively, potentially reducing the overall tax liability for your beneficiaries. Additionally, a trust can be structured in a way that ensures the longevity of the IRA by controlling the required minimum distributions (RMDs) and keeping the assets tax-deferred.

4. Special Considerations:
If you have unique circumstances, such as a blended family, intricate estate planning needs, or charitable intentions, a trust can offer customized solutions that a direct beneficiary designation might not be able to achieve. Trusts provide flexibility and can be tailored to your specific objectives, ensuring that your wishes are carried out precisely as intended.

5. Succession Planning:
By naming a trust as the beneficiary, you can establish a clear succession plan for your IRA assets. This is particularly useful if you have multiple beneficiaries or complex familial dynamics. The trust structure allows you to define how the assets will be distributed and managed, ensuring a smooth transition and minimizing conflicts or misunderstandings among beneficiaries.

It’s important to note that establishing a trust as the beneficiary of your IRA requires careful planning and assistance from legal and financial professionals. The trust document must be properly drafted to align with your goals and comply with the relevant laws and regulations.

In conclusion, while naming a family member or loved one as the beneficiary of your IRA is a common choice, using a trust can provide enhanced control, protection, tax planning, and customized solutions that address unique circumstances. By consulting with professionals and considering your specific needs and goals, you can make an informed decision to best secure the financial future of your beneficiaries and ensure your IRA assets are maximized for their benefit.