Is naming a trust as beneficiary a good idea?
First of all, you must make sure the trust qualifies as a designated beneficiary trust. There are certain requirements that must be met in order for the trust to qualify. Naming a special trust beneficiary to your IRA offers maximum control over its distributions after you are gone. Should you chose to, you can determine the amount of money (above and beyond the minimum) to come out of your IRA to any or all of your beneficiaries. There are far too many scenarios to consider here. Suffice to say, you can control your IRA from the grave if you want to. So if set up correctly, Yes- naming a special trust as beneficiary could be a good idea.
