Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jill’s spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?

Jill is considering naming a bypass trust as beneficiary of her IRA after her death. Jill’s spouse is a discretionary income beneficiary of the bypass trust. Which of the following is a reason for not designating the bypass trust as beneficiary of her IRA?

A – a bypass trust is the best way to stretch income tax deferral over the life of Jill’s spouse and his designated beneficiary

B – IRA assets will appreciate as income taxable minimum distributions are made

C – Jill’s spouse can treat the IRA as his own

D – part of the unified credit will be wasted on income tax

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