The requirements that a trust must meet to be qualified are as follows:

  1. The trust must be a valid trust under state law or would be except for the fact that there is no corpus.
  2. The trust must be irrevocable or will, by its terms, become irrevocable upon the death of the retirement account owner.
  3. The beneficiaries of the trust concerning the trust's interest in the retirement owner's account must be identifiable from the trust instrument.
  4. The IRA trustee, custodian or plan administrator must be provided with either a copy of the trust instrument - including the agreement that, if the trust instrument is amended, the administrator will be provided with a copy of the amendment within a reasonable time - or all of the following:

    I. A list of all the beneficiaries of the trust (including contingent and remaindermen beneficiaries with a description of the conditions on their entitlement).

    II. Certification that, to the best of the owner's knowledge, the list is correct and complete and that the requirements of (1), (2) and (3) above are met.

    III. An agreement that, if the trust instrument is amended at any time in the future, the owner will, within a reasonable time, provide to the IRA trustee, custodian or issuer corrected certifications to the extent that the amendment changes any information previously certified.

    IV. An agreement to provide a copy of the trust instrument to the IRA trustee, custodian or issuer upon demand.

This question was answered by Denise Appleby
Contact Denise)

  1. What is the difference between revocable and irrevocable intervivos trusts?

    Learn what an inter-vivos trust is, the difference between an irrevocable and a revocable inter-vivos trust, and why it is ... Read Answer >>
  2. What is the difference between a revocable trust and a living trust?

    Learn how a revocable trust and living trust are two terms used to describe the same thing and what the key provisions are ... Read Answer >>
Related Articles
  1. Financial Advisor

    Irrevocable Trusts: New Trends You Need to Know

    Several improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
  2. Retirement

    How To Set Up A Trust Fund In Australia

    No, they're not just for the super-rich. But you need to know the rules.
  3. Managing Wealth

    Surprising Ways a Trust Could Help Your Family

    Everything you always wanted to know about setting up trusts, in handy glossary form.
  4. Retirement

    How To Set Up A Trust Fund In The U.K.

    A guide to the whys and wherefores of setting up this most versatile of estate-planning instruments in the United Kingdom.
  5. Retirement

    Designating A Trust As Retirement Beneficiary

    Designating a trust as your IRA beneficiary can be beneficial, but it requires proper planning to avoid problems.
  6. Financial Advisor

    Should You Put Your Faith In A Trust?

    Many institutions want a piece of your portfolio, but trusts can provide a one-stop shop.
  7. Managing Wealth

    How to Set Up a Trust Fund in Canada

    You don't have to be rich to make use of a trust fund. Rules can be complex; here's what you'll need to discuss with your lawyer.
  8. Financial Advisor

    Passing an IRA to a Trust: The Good and Bad

    Creating a trust is a common estate planning tactic, but naming a beneficiary to an IRA to a trust may have unintended consequences.
  9. Retirement

    How to Set up a Trust Fund If You're Not Rich

    You don't need to be wealthy to create your own trust fund. Here's why and how to go about it.
  10. Financial Advisor

    Advisors: Tips for When to Employ Living Trusts

    Revocable living trusts accomplish estate planning objectives that aren't possible with a will. Here are some of the cases that show when to use a trust.
  1. See-Through Trust

    A trust that is treated as the beneficiary of an individual retirement ...
  2. Active Trust

    A trust where the trustee is held accountable for additional ...
  3. Qualified Trust

    A tax-advantaged fiduciary relationship between an employer and ...
  4. Irrevocable Trust

    A trust that can't be modified or terminated without the permission ...
  5. Alimony Substitution Trust

    A trust agreement in which a divorced person agrees to pay spousal ...
  6. Trust Property

    Assets that have been placed into a fiduciary relationship between ...
Hot Definitions
  1. Denial Of Service Attack (DoS)

    An intentional cyberattack carried out on networks, websites and online resources in order to restrict access to its legitimate ...
  2. Perkins Loan

    A loan program that provides low-interest student loans to undergraduate and graduate students who demonstrate exceptional ...
  3. Wealth Management

    A high-level professional service that combines financial/investment advice, accounting/tax services, retirement planning ...
  4. Assets Under Management - AUM

    The market value of assets that an investment company manages on behalf of investors. Assets under management (AUM) is looked ...
  5. Subprime Auto Loan

    A type of auto loan approved for people with substandard credit scores or limited credit histories. There is no official ...
  6. Racketeering

    A fraudulent service built to serve a problem that wouldn't otherwise exist without the influence of the enterprise offering ...
Trading Center