Who Owns Inherited IRA Payable to Trust
IRA owner died with see-through trust as bene. I know trust cannot take possession of the IRA, so who does own it?
IRA owner died with see-through trust as bene. I know trust cannot take possession of the IRA, so who does own it?
Permalink Submitted by Bruce Steiner on Fri, 2008-08-15 20:09
We use the term “beneficiary” to describe a beneficiary of a deceased IRA owner, even though after the IRA owner dies, the beneficiary owns it. In the case of an inherited IRA, we don’t call the beneficiary the “owner” is to make it clear that the beneficiary can’t make additional contributions to it, and to make it clear which set of distribution rules apply to it.
The trustee, in his/her/its capacity as trustee, owns the inherited IRA in the same way that an individual would own an inherited IRA.