Dear Listmates, I received the attached email from a client after consultation with his accountant and tax advisor: "When pre-tax retirement assets are passed to a non-spousal beneficiary, that beneficiary generally must withdraw the assets over a ten-year period. Those withdrawals are taxable as ordinary income. The income tax brackets for trusts are much narrower than those for individuals (the 37% federal tax bracket for trusts begins at approximately $16,000 of taxable income). As a result, a trust reaches the highest federal income tax bracket at a relatively low level of income. From an estate-planning perspective, if pre-tax retirement assets are inherited by minor children, and the objective is to have the resulting taxable income recognized by the children individually rather than by a trust subject to compressed trust tax brackets, how would you typically structure that? Would the children inherit directly through a custodial arrangement such as a UTMA or UGMA account, or through some other mechanism? If a custodial arrangement is used, would the custodian be appointed under the will?" I am looking for recommendations on how to handle it. Thank you for your assistance. Very truly yours, IMPORTANT NOTICE: Never trust wiring instructions sent via email. Cyber criminals are hacking email accounts and sending emails with fake wiring instructions. These emails are convincing and sophisticated. Always independently confirm wiring instructions in person or via a telephone call to a trusted and verified phone number. Never wire money without double checking that the wire instructions are correct. Stuart A. FormanAttorney at Law450 Seventh AvenueSuite 1304New York, NY 10123Tel: 212-244-0110Fax: 212-244-3686Email: firelaw56@aol.comEmail: lawfire56@gmail.com