IRA Rollover and Estate Planning: Why you might not qualify – A View From Florida

David M. Goldman writes here in the Florida Estate Planning Lawyer Blog:

Starting January 1, 2008 every non-spouse designated beneficiary will have the option to rollover an inherited IRA and stretch distributions. To take advantage of this opportunity your Florida estate plan must be setup correctly to qualify for this rollover opportunity. You are not entitled to a rollover, you must prove you meet the technical legal requirements.

  • The trust must be valid under state law;
  • The trust must be irrevocable or become irrevocable when the IRA owner dies;
  • The trust beneficiaries must be identifiable from the trust instrument;
  • Proper documentation must be provided to the IRA custodian.
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    The most common issue is the requirement that beneficiaries be identifiable from the trust document. Often trust documents do not contain adequate language to comply with the IRS rule. Make sure you have the proper language to qualify for rollover treatment.

    Rollover treatment is a privilege, not a right.

    Well said David. Thank you.

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