Reviewed September 2026.
Most IRA owners at Fidelity, Vanguard, Schwab, or a credit union name people as primary and contingent beneficiaries on a form. Some estate plans instead name a trust as the IRA beneficiary so an existing trust document controls pacing, age gates, or spendthrift terms after death. This page is educational only. It is not legal advice, and trust drafting mistakes can accelerate taxes for heirs under post-SECURE Act inherited-IRA rules.
Plain beneficiary setup: How to set up account beneficiaries. Contingents: What is a contingent beneficiary. Product that builds trust terms into the IRA itself: Trusteed IRA basics.
Trust on the form vs a trusteed IRA
| Approach | What you do | Typical use |
|---|---|---|
| Name a trust on the IRA beneficiary form | Custodial IRA stays at the broker; trust is primary (or contingent) beneficiary | Existing revocable living trust or special-needs trust should receive the IRA at death |
| Trusteed IRA | Bank/trust company is trustee of the IRA with trust terms inside the account structure | Want trust pacing without a separate trust as beneficiary |
| Name people only | Primary and contingent individuals | Simplest path for many households |
After death, inherited IRA timelines often follow the 10-year rule for many non-spouse heirs: Inherited IRA 10-year rule. A qualifying “see-through” (look-through) trust can identify which people count as beneficiaries for IRS purposes; that look-through does not by itself create life-expectancy payouts or waive the 10-year rule. Which schedule applies is a legal and tax question for counsel and a CPA, not a blog checklist.
Worked sketch: $500,000 IRA, trust as primary
Avery has a $500,000 traditional IRA and a revocable living trust for minor kids. Avery’s attorney recommends naming the trust as primary beneficiary and an adult sibling as contingent. Counsel and the custodian must confirm when the contingent designation pays (for example if the trust cannot accept the account). A sibling named as contingent inherits as that person, not automatically as trustee for the kids.
| Step | Action |
|---|---|
| 1 | Attorney confirms the trust language can accept retirement assets and names living beneficiaries clearly |
| 2 | Avery logs into Schwab (example) and replaces “spouse / kids by name” with the trust’s legal name and date |
| 3 | Avery uploads or mails any custodian trust affidavit the firm requires |
| 4 | Avery stores a copy of the beneficiary confirmation with the estate binder |
| 5 | After divorce or remarriage, Avery revisits designations: Update beneficiaries after divorce or remarriage |
If Avery instead names the kids individually, the custodian pays under IRA rules without the trust’s distribution schedule. If Avery names the estate (not recommended in many plans), probate and tax timing can worsen.
Owner lifetime RMDs still follow the owner’s age while Avery is alive: RMDs.
Literacy warnings (not legal advice)
- A trust that is not drafted for retirement assets can force faster taxable withdrawals for heirs.
- Charity vs individual trust beneficiaries change the available distribution methods.
- Spouse-as-beneficiary rollover options differ from trust-as-beneficiary options.
- Custodian forms control at death even when a will says something else for that IRA.
- “See-through,” conduit, and accumulation trust labels are attorney terms; ask counsel which design you have.
Checklist
- Decide whether people, a trust, or a trusteed IRA matches the estate plan.
- Use the trust’s exact legal name and date on the IRA form.
- Name contingents if the custodian allows them beside a trust primary.
- Confirm with an estate attorney and tax professional before you submit.
- Re-copy confirmations after every life event or custodian transfer.
Educational only. Not legal, tax, or estate-planning advice. Trust and inherited-IRA rules are complex and fact-specific; work with a qualified attorney and tax professional before naming a trust as beneficiary.