Katsmeow
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Jul 11, 2009
- Messages
- 5,329
We are redoing our wills since we moved. Most of our estate is not that complicated. Home will go to the surviving spouse on death. Banks account are joint and payable to other spouse on death. So the only thing that really passes through the will is personal property. Of course, if both of us die there are contingent beneficiaries and then the house would go to contingent beneficiaries. We don't really keep a lot of cash and our personal property is not that valuable so it is mostly the equity in the house. We do have a number of contingent beneficiaries. All are currently adults but if one of them died then their descendants might include minors. So there will likely be a minor trust in case there are any at the time.
But, then there are our IRAs. I am wondering if for the contingent beneficiaries if there would be a benefit to setting up an IRA as the contingent beneficiary. For most of the contingent beneficiaries I have no issue with them having immediate control of their share. However, there is at least one contingent beneficiary that I would prefer that they not receive immediate control and would want control of their share to be received over a period of a few years. Does have a trust as beneficiary potentially allow for this?
Another issue that I am not sure if there is a solution for. Let's say I die and have my IRA set with my husband as beneficiary. I have some contingent beneficiaries. DH is alive though and inherits. DH forgets to set up new beneficiaries for my IRA (which is now his inherited IRA) or unfortunately lacks the capacity to do so at that time. Then when he dies the IRAs are distributed according to the default. Which isn't what we wanted. Is there any way to avoid that?
(We have an attorney and I am going to discuss these issues but just trying to gather some info. We do not have a revocable trust for our assets and would prefer not to have one given that it really doesn't look like we need one).
But, then there are our IRAs. I am wondering if for the contingent beneficiaries if there would be a benefit to setting up an IRA as the contingent beneficiary. For most of the contingent beneficiaries I have no issue with them having immediate control of their share. However, there is at least one contingent beneficiary that I would prefer that they not receive immediate control and would want control of their share to be received over a period of a few years. Does have a trust as beneficiary potentially allow for this?
Another issue that I am not sure if there is a solution for. Let's say I die and have my IRA set with my husband as beneficiary. I have some contingent beneficiaries. DH is alive though and inherits. DH forgets to set up new beneficiaries for my IRA (which is now his inherited IRA) or unfortunately lacks the capacity to do so at that time. Then when he dies the IRAs are distributed according to the default. Which isn't what we wanted. Is there any way to avoid that?
(We have an attorney and I am going to discuss these issues but just trying to gather some info. We do not have a revocable trust for our assets and would prefer not to have one given that it really doesn't look like we need one).