09/16/2026
You created a trust to protect your family.
You named beneficiaries.
You planned ahead.
So the last thing you’d expect is for your trust to create a tax problem you never intended. 😳
But retirement accounts changed.
Under the SECURE Act, most non-spouse beneficiaries now have a 10-year window to withdraw inherited retirement accounts. And when a trust is the beneficiary, the way those distributions are handled can create important tax and planning questions.
Here’s the number that caught my attention:
In 2026, trusts and estates reach the 37% federal marginal tax bracket at just $16,000 of taxable income.
For a single individual, that same 37% bracket doesn’t begin until taxable income exceeds $640,600.
But here’s the thing…
Tax planning isn’t just about paying the lowest possible tax.
It’s about making sure your money goes where you want it to go—and protects the people you love.
The right strategy can look very different depending on who your beneficiaries are.
A child going through a divorce may need a different kind of protection than an adult child who’s financially independent.
A child with special needs may need something different again.
And if someone struggles with addiction, creditors, lawsuits, or managing money, simply handing them a large inheritance may not accomplish what you intended.
That’s why your IRA beneficiary designation shouldn’t be treated like a form you fill out once and forget about.
Your:
〰️ IRA
〰️ Trust
〰️ Beneficiary designations
〰️ Tax strategy
〰️ Family circumstances
…all need to work together.
Because the best plan protects the person, not just the account. ❤️
Let’s make sure the wealth you worked so hard to build actually does what you intended for the people you love.
Contact McMullan and Brown to schedule your free 15-minute consultation!
📱 501.507.2237
📧 [email protected].
