Accumulation trust
See-through trust that may retain IRA distributions inside the trust rather than paying them immediately. More control; harder SECURE Act compliance; trust-level tax at compressed brackets.
| Facet | Detail |
|---|---|
| Also called | See-through accumulation trust, non-conduit trust |
| A-B / A-B-C role | None |
| When created | Testamentary or inter vivos |
| Revocable | No |
| Inter vivos / testamentary | Either |
| Typical beneficiaries | Children or grandchildren as discretionary beneficiaries |
| Primary purpose | Trustee control over IRA payout timing and reinvestment |
| Marital deduction | No |
| Uses estate exclusion | N/A for IRA character |
| In survivor's estate | No |
| Basis step-up | N/A for pre-tax IRA |
| Income tax | Trust taxed on undistributed income at high compressed rates |
| Crummey powers | No |
| GST / dynasty | 10-year rule; GST may apply to skip persons |
| Spendthrift | Strong |
| See-through (IRA) | Yes — but stricter drafting than conduit |
| Key tradeoff | Control vs trust income tax compression and compliance risk |