IRA/401k Custodial Approval

Send the draft trust or a completed copy with the correct names, open quotation etc. to your prospective custodian. It should be accompanied by a letter stating that you “have read and approved the trust and are not seeking legal advice”.

You could fill in a blank in pencil with preliminary trustees, beneficiaries, addresses and other information. The custodians are concerned about the exact terminology of them as “Administrator” and the proper vesting of the IRA account.

Consideration should be given to your successor beneficiaries and to successor trustees. Unless your trustee is a Corporation or other entity that will not die, you should name a trusted friend or relative to be a successor trustee so that the operation of your IRA is not impaired upon the death or disability of your trustee.

If your prospective custodian has minor modifications or constructive suggestions that you can implement, you can agree. If they require major modifications or a legal opinion from your attorney, you should choose another custodian.

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