If you have assets valued at $200,000 or more in an IRA, then you should consider setting up a type of revocable living trust that's specifically designed to be the beneficiary of your IRA, commonly referred to as an IRA Trust, IRA Living Trust, IRA Inheritor's Trust, IRA Stretch Trust, or IRA Inheritance Trust.
How Does an IRA Trust Work?
An IRA Trust is a special type of revocable living trust that's designed to hold your IRA assets after your death. Within the IRA Trust agreement you will establish different subtrusts for the benefit of your spouse and/or other beneficiaries. If you want to create a lasting legacy for your family, then the subtrusts established within the IRA Trust agreement can be set up as lifetime Dynasty Trusts that can continue for many years into the future.
Naming the IRA Trust as the Beneficiary of Your IRAs
The different subtrusts established within your IRA Trust agreement will be named as the primary and secondary beneficiaries of your IRAs. Thus, when you die, the IRA assets will flow to your beneficiaries under the terms of the subtrusts that you've created for their benefit. And since the IRA Trust is a revocable trust, you can change the terms of any or all of the subtrusts at any time prior to your death.
For more information about IRA Trusts, refer to What Are the Benefits of an IRA Trust?