by Thomas D. Begley, Jr., CELA<\/strong><\/p>\n Separate Trust<\/em><\/strong><\/p>\n A separate trust designed specifically to control the retirement account is recommended. It is best that the trust not be part of a revocable living trust or any other trust. A \u201cstandalone retirement trust\u201d is preferred.<\/p>\n Professional Trustee<\/em><\/strong><\/p>\n When an IRA is paid to a standalone retirement trust or any other trust, it is important to consider a professional trustee. The rules regarding inherited retirement accounts are complex and family member trustees are often unfamiliar with them. This could cause a loss of important tax benefits. Most family members do not understand the rules regarding required minimum distributions (RMDs), conduit trusts or accumulation trusts. This could cause loss of important tax benefits. If the retirement account is $500,000 or more, it usually makes more sense to name a professional trustee. The professional trustee understands the tax rules and has investment expertise.<\/p>\n