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The Trusteed IRA

The Menashe Morley Group

The Trusteed IRA

Consider a situation where an IRA owner wishes to bestow the IRA to a spouse or to their children but is concerned that the beneficiary may be a spendthrift or unable to properly manage the IRA. Or a situation where the owner has divorced and remarried and wants a second spouse to receive income but pass the remainder of the IRA to his children. Safeguarding a large IRA for beneficiaries can be a concern to many and trusteed IRAs may be a solution.


Trusteed IRAs offer the same features as regular IRAs plus the asset control of a trust. With a trusteed IRA, the owner can specify the distribution of the IRA to various beneficiaries and control how the funds are invested, even after death. This safeguards the assets from spendthrifts, beneficiaries who may not manage the assets properly, or a beneficiary who may use all the assets for themselves.


It’s also important to remember that while a surviving, legally married spouse can often inherit IRA assets automatically, domestic partners cannot. An accountant and financial advisor can discuss the difference between a spouse and non-spouse beneficiary, and how to designate a partner as a non-spouse beneficiary. Additionally, an advisor can provide information on rollover and distribution options after inheriting a partner’s IRA assets.


Trusteed IRAs can be a powerful tool, especially for large IRAs or owners wishing to ensure their IRAs are not squandered. A Trusteed IRA puts the control in the IRA owner’s hands and allows them to pursue their own unique goals. Check with a financial advisor to see if a Trusteed IRA may fit your wealth management needs.


The Menashe Morley Group
The Menashe Morley Group

Neither Merrill Lynch nor its financial advisors provide tax, accounting or legal advice. Clients should review any planned financial transactions or arrangements that may have tax, accounting or legal implications with their personal professional advisors.


David Menashe is a senior vice president and wealth management advisor, and Bruce Morley is a vice president and wealth management advisor, for Merrill Lynch, Pierce, Fenner & Smith Incorporated, a registered broker-dealer, member SIPC, and a wholly owned subsidiary of Bank of America Corporation. Merrill Lynch Wealth Management makes available products and services offered by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer and member SIPC, and other subsidiaries of Bank of America Corporation (“BAC”). Investment products are not FDIC insured, are not bank guaranteed & may lose value.


Photo by Andy Templeton



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