A:

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)

RELATED FAQS
  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 >>
  3. What is the difference between a revocable trust and an irrevocable trust?

    Find out more about irrevocable trusts, revocable trusts and the main differences between them. 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. 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.
  5. 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.
  6. 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.
  7. 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.
  8. Investing

    A Look Into Creating a Trust Fund With ETFs (VCIT, SDIV)

    Learn the basics of how a trust works and the two most common types. Discover how to use ETFs to fund a trust and the different strategies.
  9. Personal Finance

    Buying a Home in Trust

    Buying a home in a real estate trust allows for tax advantages, possibly avoiding probate court, and future family conflict. Below we outline the two different types and what to arm yourself ...
  10. Investing

    Unit Investment Trusts Market: 3 Trends in 2016

    Learn more about unit investment trusts (UITs), and discover some of the most common trends in the UIT market to date in the year 2016.
RELATED TERMS
  1. See-Through Trust

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

    A trust that can't be modified or terminated without the permission ...
  3. Trust Fund

    A trust fund is a fund comprised of a variety of assets intended ...
  4. Beneficiary Of Trust

    A beneficiary of trust is a person for whom a trust was created, ...
  5. Trustee

    A person or firm that holds or administers property or assets ...
  6. Irrevocable Income-Only Trust - IIOT

    A type of living trust often used for Medicaid planning. It protects ...
Hot Definitions
  1. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  2. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  3. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  4. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
  5. Inflation

    The rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of ...
  6. Merchandising

    Merchandising is any act of promoting goods or services for retail sale, including marketing strategies, display design and ...
Trading Center