Your Competitive Edge: Checking custodial documents is proactive planning that most other advisors are not doing and don’t know about. It may uncover potential problems waiting to happen.

IRA Custodial Document Checklist
One Dozen Questions Advisors Must Ask:

  1. What is the “default option” when there is no beneficiary named?
  2. Are “per stirpes” beneficiary provisions accepted?
  3. Is a customized beneficiary form accepted?
  4. Can the beneficiary name a beneficiary?
  5. Can non-spouse beneficiaries move investments via a trustee-to-trustee transfer?
  6. Are multiple beneficiaries and IRA splitting permitted?
  7. Will a trust be accepted as beneficiary?
  8. Will a power of attorney or disclaimer form be accepted?
  9. Is there a divorce provision?
  10. Is there a “simultaneous death” provision?
  11. Is there a “cross-collateralization agreement” that might disqualify the IRA?

12th and most important question of all…
Check that the IRA custodian allows a stretch IRA for beneficiaries. As unbelievable as it may sound, there are still some who don’t!