It is most common for people to name individual people as the beneficiaries of their IRAs, but there can be many reasons for naming a trust as the beneficiary. Some of these reasons include
• Minors will be inheriting your IRA. Without a trust, their guardian will manage the inherited IRA on behalf of the minor until the minor reaches the age of 18, but at that age, total control of the entire IRA must be turned over to the young but no longer minor child.
• Your beneficiaries may not be minors, but they have already shown a lack of ability to properly manage money and make wise financial decisions.
• Your beneficiaries may be disabled or have special needs. Through the use of a properly established ...