What Happens When the IRA Beneficiary is a Trust?

An IRA (individual retirement account) trust is a special type of trust that can be designated to receive distributions from an IRA to gain asset protections such as spendthrift protection, creditor protection and divorce protection, special needs trust protection and achieve "dead hand control".
Disclaimer: The information provided in this video is for educational purposes only and should not be considered legal or financial advice. Consult with qualified professionals before making decisions related to estate planning, beneficiary designations, and retirement accounts.
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[@rajbeekie7124]

Having an accumulation trust is fine, but the tax rates for a trust are generally higher than those of beneficiaries.

[@hollycrovo8390]

My understanding is that when the trust is the beneficiary of an IRA or Retirement account it will be taxed at an extremely high rate (37%) unless the distributions are income. Am I correct that the principal will have to come out within the 10 year period and that amount will be taxed at 37%?