Q: Should I put IRA into revocable trust to prevent child's father from controlling assets?

A: You absolutely do not want to re-title your IRA to your revocable trust because that would be a taxable event and also would stop all tax-free growth in the account. What some people do is name their trust as the beneficiary of the IRA. That is something that you might consider with the advice of your estate planning attorney.

A: No, you should not put your IRA into your revocable trust. This will be a taxable event which will defeat the tax-deferred growth which is a major benefit of having an IRA in the first place. Instead, you can name a trust as a beneficiary of the IRA. The trust that is beneficiary can be a revocable living trust you already have or it can be a testamentary trust formedunder your will after your death. Whether you name an existing revocable living trust as beneficiary or a testamentary trust that will be created under your will, you will need to have special provisions regarding the holding of the IRA or portion of it for the beneficiary. The trustee of these trusts can be someone you choose.

The IRA can be held either in a conduit trust in which the trustee has discretion, within the bounds of the SECURE Act, on when to withdraw from the IRA but must then immediately distribute the withdrawn amount to the beneficiary. THe alternative is an accumulation trust in which the withdrawn funds continue to be held in the trust and are distributed in the discretion of the trustee.

There are advantages and disadvantages to conduit and accumulation trusts, including tax implications. You should work with an experienced estate planning attorney to determine what is the best option for your situation. You should also take care that the beneficiary designation that goes to the IRA custodian institution is drafted correctly.

A: Putting your IRA directly into a revocable trust isn’t usually recommended while you're alive, because doing so could trigger immediate tax consequences. Traditional IRAs are meant to be owned by individuals, and transferring ownership to a trust can count as a taxable distribution. Instead, a better approach is to name your revocable trust as the **beneficiary** of the IRA, not the owner. This keeps the account in your name during your lifetime but directs the funds to the trust after you pass.

By naming your trust as the beneficiary, you can set terms that prevent your child’s father from gaining control of the assets. Within the trust, you can name your brother as trustee and lay out how and when the funds should be used for your child. This gives you more control over the money, even after you're gone, especially while your child is a minor.

Keep in mind that naming a trust as the IRA beneficiary can affect how the required distributions are handled after your death, and it may limit the tax-deferral options compared to naming an individual. But when your goal is to protect your child's inheritance from someone you don't trust, the tradeoff may be worth it. You’re thinking ahead in a really responsible way by planning this now.