At New Direction Trust Company, it’s important that your wishes are upheld whenever possible. This would be especially true in the unfortunate event of your death. Designating beneficiaries for your self-directed IRA can help protect the tax-advantaged nest egg you’ve built. Without beneficiaries, your account my end up in probate and your holdings may be distributed and taxed.
You can also help ensure that your hard-earned cash and assets go to the exact person or persons you want. New Direction Trust Company allows you to add, remove, or revise beneficiaries at your discretion, so don’t hesitate to contact our office if you need to make a change to your account.
Primary Beneficiary: The first person(s) in line to inherit your account. You may designate multiple primary beneficiaries as long as their respective percentages add up to 100% (two beneficiaries can split 50/50, 75/25, etc.).
Contingent Beneficiary: Your holdings will only go to your contingent beneficiary if your primary beneficiary is unable to inherit the account. As with primary beneficiaries, you may designate multiple contingent beneficiaries.
Spouse Beneficiary: If your husband or wife inherits your entire account, he or she may treat the account as their own without any special parameters surrounding distributions, contributions, or transfers/rollovers.
Non-Spouse Beneficiary: Non-spouse beneficiaries may elect to take annual required minimum distributions, distribute the account over the following five years, or distribute the account all at once. Other factors apply for non-spouse beneficiaries as well.