Leaving inheritance for my niece

[bill18163]

What is the name of your state?I live in Pennsylvania. My wife and I have a revocable living trust. We both have IRA's and I am the primary beneficiary of her IRA and she is the primary of mine. The IRA's are not in the trust because we are told that there would be excessive tax repercussions. My biggest concern is the money I want to leave to my niece. At my passing my wife would receive my IRA or at her passing I would receive her IRA. My niece is a contingent beneficiary of my IRA. When the 2nd of us passes on, my niece would receive her inheritance in the form of a check out of the IRA or I would hope she has enough sense to roll it into an IRA in her name. My niece does not handle money very well and the amount she will receive will be in seven figures. I would like to somehow set things up so she would get a sum of money every month and not be able to get at the principal amount of her inheritance. She would blow through the money in a year or two if she received it all at once. Is there a way to write into our living trust what I have just outlined and have it air tight so she can't get at the money? How do you get around the fact that the IRA is not in the trust and would just pay the beneficiaries when the 2nd of us passes on?

 

[PayrollHRGuy]

I'm sure you will get some good advice from others on the forum but the best advice you will receive is to enlist the services of an attorney that specializes in estate matters.

 

[adjusterjack]

Is there a way to write into our living trust what I have just outlined and have it air tight so she can't get at the money? How do you get around the fact that the IRA is not in the trust and would just pay the beneficiaries when the 2nd of us passes on?

It's possible to create a spendthrift trust (google it) and name the trust as a beneficiary of the IRA.

Now you need to read the following articles to see how complicated that can be and how risky it can be if not done properly by an attorney.

https://duckduckgo.com/?q=can+a+trust+be+the+beneficiary+of+an+IRA&t=ffhp&ia=web

 

[TrustUser]

can you make the trust the beneficiary of the ira ?

 

[TrustUser]

can you make the trust the beneficiary of the ira ?

sorry, did not see the reply right above mine