I am having a lawyer set up a Trust for me which has clearly defined beneficiaries like my sister. My sister is a spendthrift so I don’t want her to get the money all at once, perhaps not even during a 10 year period. My understanding is because of the Secure Act Tax law all money from the IRA has to be distributed within 10 years and if the distributed money is left in the Trust for the benefit of my sister it will get taxed at the much higher tax rate which can be as high as 35%. Is that correct or is there any way that the money distributed from my IRA to the Trust for the benefit of my sister during a 10 year period can be left in the Trust for her benefit and taxed at my sister’s Tex rate? Thank you!
