1. Revocable trusts can be executed and filed with the IRA institution which enables payout (distributions) from the IRA to be payable to separate Revocable IRA Trusts for the benefit of a child or grandchild after the death of the IRA owner. Upon the IRA owner's demise, distributions will be paid from the IRA institution to the revocable trust. The trustees selected will then issue a check payable to the beneficiary of the trust based upon the life expectancy of the beneficiary and the account balance of the IRA. Any amounts payable to a minor will be payable to a custodian under the Uniform Transfers to Minors Act or similar act for the benefit of such minor.

2. The IRA distribution elections and designation of beneficiary forms will be filed with the institution designating the IRA revocable trusts as beneficiary to receive distributions upon the IRA owner's demise.

3. The trustee or beneficiary of the IRA Trust may accelerate payments at a certain age contained in each trust.

4. Each trustee will be listed in each trust document together with the powers given to the trustee.

5. All funds given to a grandchild will be taxed at the parents income tax level until they reach age 14. Thereafter, they will be taxed at their own rate which should be substantially less than the parent's income tax bracket and the funds bypass the child's estate tax.

Advantages of the revocable trust as a beneficiary

     1. If the IRA death benefits are payable directly to a designated beneficiary, then the death benefits may be accelerated at the designated beneficiary's will. A trust can prevent unnecessary acceleration.

     2. If the IRA death benefits are payable to a trust, the trustee may elect an extended payout period if the IRA owner dies before the required beginning date.

     3. A mature trustee will control the investments while the assets are in the IRA.

     4. If the IRA death benefits are payable to a trust, they may be protected from the creditors of the designated beneficiary under state law and/or in a divorce proceeding.

     5. If IRA death benefits are payable to a trust, they may be protected if the designated beneficiary declares bankruptcy.