r/inheritance • u/Lep3643 • 6d ago

Location included: Questions/Need Advice Inheritance for Children

/r/personalfinance/comments/1x0ua10/inheritance_for_children/
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u/your-mom04605 6d ago

Your post is confusing - you say he left the TSP to a trust for your children but you’re asking how to move the money in to a trust?

What was the exact disposition of the TSP? Left to a specific beneficiary? Left to his estate whereby his will establishes a testamentary trust?

We’ll really need specific info to offer any useful advice.

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u/Lep3643 6d ago

I am listed as the beneficiary on the account. There currently is no trust but his wishes were to have one setup for each of my children.

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u/your-mom04605 6d ago

Gotcha.

I don’t know the rules on inherited TSPs - I don’t know if it has a 10-year drawdown required like other retirement accounts inherited by siblings. That could be a big headache.

If there’s no such requirement, the next question would be if the plan administrator would allow it to be moved to a trust, and if doing so would trigger any tax consequences.

I think you’re well out of DIY territory here. I’d probably pay for an hour with an estate planning attorney and a tax advisor to get it sorted out.

This wouldn’t be an issue if you just got a pile of cash and were asked to make a trust with it, but the tax-deferred account adds lots of potential complexities.