Advisory Opinion on IRA Estate Planning

This document is an advisory opinion from the U.S. Department of Labor on whether an IRA owner's estate planning arrangement, where the IRA owner established a revocable trust for the benefit of his grandson and designated the trust as the IRA beneficiary, would result in a prohibited transaction under the Internal Revenue Code. The opinion concludes that the IRA distributions to the trust and the payment of statutory trustee commissions would not constitute prohibited transactions.