IRA Beneficiary
19. Option 3: Trust as Beneficiary
Naming a trust as beneficiary will give you maximum control over your tax-deferred money after you die. That's because the distributions will be paid not to an individual, but into a trust that contains your written instructions stating who will receive this money and when.
This can protect the assets from the courts (if the beneficiary becomes incapacitated), from creditors (even ex-spouses) and from irresponsible spending.
And it can help save estate taxes after you die.
Here's how it works.