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Is the TEA POT Trust Right for Your Clients?Is the TEA POT Trust Right for Your Clients?

It may be the best prescription for the new 10-year payout requirements for IRAs.

26 Min Read
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Under the new Setting Every Community Up for Retirement Enhancement (SECURE) Act that became effective for plan participants (PPs) dying after 2019, individual retirement accounts and other qualified retirement plans left directly to beneficiaries, or to certain see-through trusts for beneficiaries, must be entirely distributed no later than Dec. 31 of the 10th consecutive calendar year that follows the year of the death of the owner (PP) of the IRA/plan.1 This is known as the “10-year rule.” A tax-efficient allocation (TEA) POT trust, and the TEA POT trust system (the System)2 can spray IRA assets subject to ordinary income tax rates to lower bracket beneficiaries, which is accompanied by a separate equalization trust to provide more eq...

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About the Authors

Alan S. Gassman

Attorney

http://gassmanlawassociates.com/attorney/alan-s-gassman/

Alan S. Gassman, J.D., LL.M. is a board certified estate planning and trust lawyer who practices in Clearwater, Florida.  He has an LL.M. in taxation from the University of Florida, and practices in the areas of trust and estate planning, taxation, wealth preservation, and the representation of physicians and medical practices.

Mr. Gassman speaks at many tax conferences, national programs and national and local webinars, including Bloomberg BNA Tax and Accounting, the Notre Dame Tax and Estate Planning Institute and at many other conferences and webinars.

John N. Beck

John Beck, JD, LL.M. is an associate at the law firm of Gassman, Crotty & Denicolo, P.A., in Clearwater, Florida and practices in the areas of Estate Planning, Tax, and Corporate and Business Law. John publishes articles and presents webinars on various topics for both clients and practitioners and will be a co-author on the upcoming edition of the 199A and 1202 Handbook. John attended the Charlotte School of Law where he graduated cum laude, and received his LL.M. in Taxation from the University of Florida. He received his MBA with a focus in accounting from Sacred Heart University. John is a licensed attorney in the states of Florida and North Carolina. His email address is [email protected].