I wish to make my Revocable Family Trust (RFT) the beneficiary if the Roth IRA. My granddaughter is beneficiary to 20% the Roth, but if the RFT is the beneficiary, the earnings that are not withdrawn are subject to trust tax , and earnings over $15,000 annually are subject to 37% tax. I think.
I want to dictate the amounts my granddaughter withdraws and her spending purpose from the grave, up to her 25th birthday or the end of the 10-year “stretch.” I cannot do this with my Roth IRA. But I can do it from the RLT, if I want to lose 1/3 of the compounded earnings. Not.
So, what solution do you have for my dilemma? How do I micromanage my GD’s spending from the grave and keep the Roth’s earnings tax free?