Standalone Retirement Trust Service

If you have significant retirement savings in an IRA or 401(k) with balances over $150,000, ensuring that these accounts are passed on securely and protected from unforeseen risks is essential. A Standalone Retirement Trust (SRT) is a specialized estate planning tool designed to safeguard your retirement accounts while providing maximum flexibility and protection for your beneficiaries.

What is a Standalone Retirement Trust?

A Standalone Retirement Trust is a separate legal entity created specifically to receive and manage qualified retirement accounts, such as IRAs or 401(k)s, after your passing. Unlike naming a beneficiary outright, an SRT provides enhanced asset protection, control over distributions, and the assurance that your hard-earned savings will benefit your loved ones as intended.

Why This is a Good Idea

• Asset Protection: Funds in an SRT are shielded from your beneficiaries’ creditors, lawsuits, or other legal claims, ensuring your retirement savings remain intact for their intended purpose.

• Divorce-Proofing: The trust protects inherited retirement funds from being divided in a beneficiary’s divorce proceedings.

• Control Over Distributions: You can specify how and when beneficiaries receive distributions, preventing them from withdrawing large sums too quickly and potentially wasting or mismanaging the funds.

• Support for Minor Children: For minor children or young adults, the trust ensures professional management of inherited retirement accounts until they are mature enough to handle the funds responsibly.

• Tax Efficiency: When structured properly, the SRT helps maintain the tax-deferred growth of retirement accounts, stretching distributions over the beneficiary’s lifetime to minimize tax burdens.

• Compliance with Changing Laws: An SRT is designed to navigate complex and ever-changing retirement account regulations, such as those introduced by the SECURE Act, which impact how beneficiaries must withdraw funds.

How It’s Set Up

1. Drafting the Trust:

   • We create a standalone legal document tailored to your unique circumstances and estate planning goals, ensuring compliance with IRS regulations for qualified retirement accounts.

2. Designating the Trust as Beneficiary:

   • Your IRA or 401(k) beneficiary designations are updated to name the SRT as the primary or contingent beneficiary.

3. Appointing a Trustee:

   • You select a trusted individual or professional to manage the trust, ensuring distributions are made in line with your wishes and legal requirements.

4. Funding the Trust:

   • Upon your passing, your retirement account assets are transferred into the trust for management and distribution according to the trust terms.

5. Integration with Estate Plan:

   • The SRT is seamlessly coordinated with the rest of your estate plan to ensure all assets, including retirement accounts, are managed and distributed efficiently.

Who Benefits Most from a Standalone Retirement Trust?

• Parents Protecting Minor or Young Adult Children: Ensures retirement savings are managed responsibly until children are ready.

• Blended Families: Provides control over how and to whom funds are distributed, ensuring fair treatment of all heirs.

• High Net Worth Individuals: Protects large retirement accounts from creditors, divorce, and poor financial decisions by heirs.

• Those Concerned About Tax Efficiency: Ensures tax-deferred growth and strategic distributions to minimize tax impacts.

With an SRT, you gain peace of mind knowing your retirement savings will be protected and managed exactly as you envision, providing a lasting legacy for your loved ones. Let us help you secure your family’s future with confidence and care.