Many people create revocable trusts to hold their assets. This can provide incapacity protection and probate avoidance.
However, if asset protection is a concern you probably should avoid naming a revocable trust as the beneficiary of your IRA. At least one court has ruled that an IRA left to a revocable trust is exposed to claims from the creditors of the IRA owner. That was true even though the IRA assets were not available to creditors during the lifetime of the IRA owner.
If you wish to have a trust inherit your IRA, you can name an irrevocable trust instead. The individuals you’d like to inherit your IRA can be the beneficiaries of the trust. Provide the trustee with the ability to spread distributions among the beneficiaries and include “spendthrift” language, which can allow the underlying trust assets to be protected from creditors.
