IRA Protection Trusts

IRA Protection Trusts, also known as Stand Alone IRA Trusts, are designed for people with large IRAs. If your revocable living trust is written to provide your loved ones with the most flexibility, it probably will not qualify as a designated beneficiary of your IRA – which means each distribution from the IRA to your child will be unprotected from divorce claims and lawsuits.

Many people understand that when they pass away, their spouse and then children will receive the distributions from their IRA. With the right planning, the IRA distributions can accumulate in a special Divorce and Asset Protection Trust specifically designed for IRAs. The specific design will reduce the required minimum distributions to allow the IRA to stretch out as long as possible to allow tax free compounding for as long as the IRS will allow. When the required minimum distributions are made, they can be accumulated in the protected IRA trust.