Life and Death Planning for Retirement Benefits

356

Life and Death Planning for Retirement Benefits

If every beneficiary on your list is an individual, the trust qualifies as see-through trust, and the ADP is the life expectancy of the oldest individual on your list. If the list includes a nonindividual, go to Answer A.

PART III: ANSWERS

The “answers” to the quiz are found in different places. In some cases, when you answer a particular question in a particular way, the answer is given to you right then and there. In other cases, you are referred to another section of this book (because the answer is not necessarily clear). Finally, in some cases you are told to “Go to Answer A” (or B, C, or D). Here are Answers A, B, C, and D: Answer A: This trust does not qualify as a see-through trust under the IRS’s minimum distribution trust regulations. For the effect of “flunking,” see ¶ 6.2.01 . If the participant is still alive and qualification would be desirable, consider having the participant amend his trust so it qualifies. If the participant is deceased, consider disclaimers, reformation, and other “cleanup strategies” at ¶ 4.4–¶ 4.5. Answer B: This trust has not complied with the documentation requirement ( ¶ 6.2.08 ). If the participant is still alive, or he is dead but the filing deadline has not yet passed, comply with the requirement then answer Question 3 “yes” and proceed with the rest of the quiz. If the participant is dead and the filing deadline has passed, go to Answer A. Answer C: This trust qualifies as a see-through trust for a single individual beneficiary (the “conduit beneficiary”) within the meaning of Reg. § 1.401(a)(9)-5 , A-7(c)(3), Example 2. Answer D: This trust should qualify as a conduit trust for the benefit of the multiple individual conduit beneficiaries, subject to caveats in ¶ 6.3.06 .