Retirement Trust

In this estate planning strategy, a trust is named as the beneficiary of retirement accounts like IRAs or 401(k)s. The purpose of a retirement trust is to shield retirement accounts from creditors, lawsuits, bankruptcies, or divorce. When a retirement trust is used successfully, the client can enjoy the benefits of a retirement account and the protection of the trust. 

With a retirement trust, just like other types of trusts, the funds can only be distributed to designated beneficiaries and those distributions are overseen by a trustee. 

Read more about retirement trusts and who might need one here.