The IRS just raised the stakes when it comes to using beneficiary trusts for IRAs and other retirement plans.

In Private Letter Ruling 201021038, the IRS imposed new requirements for these trusts. Make a mistake, and the income tax “stretchout” of required minimum distributions may be lost.

To make matters worse, the IRS proclaimed its unwillingness to accept a post-death court modification intended to cleanup drafting mistakes!

In other words, make sure you are working with a lawyer who is up to speed on these new requirements and is capable of drafting your IRA beneficiary trust right the first time.

Contact us to find out what proper planning and “backup language” needs to be put in your IRA beneficiary trust to satisfy this new ruling from the IRS.