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Trusts & Estates Law/ira distribution when you have a trust

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Question
This is my first year with a revocable trust.  My IRA is not included in the trust.  For 2014, I must take a MRD of $26,000.00.   In doing the taxes, how do I keep that money from being mingled with the trust income, which would result in my being taxed at the trust rate (for anything over 12,000.00 I believe), which is much higher?  

I hope I haven't made an expensive mistake by setting up the trust.

Answer
Hi Janet,

Very simple:  Your IRA is not and should never be part of your trust.  The IRA required distribution will go on your personal tax return and the trust files its own return.  I see no way that they would be co-mingled.  

Let me know if you have any other questions.

David Disraeli
www.financingalternatives.net  

Trusts & Estates Law

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David Disraeli

Expertise

I can answer general questions about estate planning and trusts. I can also answer questions about estate tax reduction and advanced charitable giving, family partnerships and asset protection. I may have already answered your question here: www.lifeplanblog.com or here www.pcfo.net

Experience

I have worked for 24 years with clients and their attorneys to formulate estate plans to meet client goals. I have found many mistakes made by client attorneys and were able to have them corrected. I focus on making sure that beneficiaries are protected from current or future spouses and lawsuits so the wealth stays in the family. I have also published a book on Aging Parents which can be found on Amazon https://www.amazon.com/dp/B003VP9WTG

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President and founder of The Personal CFO Inc.

Publications
www.pcfo.net www.lifeplanblog.com

Education/Credentials
Certified Financial Planner 1994

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