Be careful here as the IRS has something called qualified trusts when it comes to being named beneficiaries of retirement assets. If you fail to structure this trust in accordance with these very technical and tricky qualified trust rules, you risk an acceleration of the distributions thereunder and an immediate tax of all monies in the 401(k) plan. The trust suggested by the prior attorney may not meet all the tests. You need to meet with a tax/estates attorney who knows how to structure these types of trusts and to discuss the merits of this trust or other mechanisms.
As for the life insurance, the UTMA is very restrictive and may not meet all your needs. You should consider a living trust and perhaps an irrevocable life insurance trust (ILIT) should be considered. Do not do estate planning on your own. You or your family will be hurt by such self-lawyering. Get with an estate planning attorney immediately.
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Mr. Fromm is licensed to practice law in PA with offices in Philadelphia and Montgomery Counties. He is uuthorized to handle IRS matters throughout the United States.His phone number is 215-735-2336 or his email address is
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[email protected] ,
website is www.sjfpc.com.
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