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It’s generally beneficial to keep assets in individual retirement accounts for as long as possible because IRAs provide significant tax benefits. But, if IRA benefits are payable to a trust, and all of the beneficiaries and permissible appointees of the trust are individuals, the one with the shortest life expectancy (that is, the oldest one) is the designated beneficiary for purposes of determining the applicable distribution period (that is, the required distributions).1 This will end up depleting assets from the IRA sooner. To avoid this result, it pays to remove unwanted beneficiaries from the trust. There are several ways to do this, including decanting the trust.
Benefits of IRAs
Qualified plans and IRAs provide significant income ta...
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