Does Test Trust qualify as designated beneficiary
Ed,
I am trying to figure out if a Testamentary Trust created in grandparents Will will qualify as a designated beneficiary.
Facts:
Grandparents name Grandchild Trust as beneficiary of his IRA (grandparent is passed his RBD)
Grandparent takes RMD in year of his death
Grandchild trust is created under will of Grandparent and states that if Grandchild dies balance of funds would go to Grandchild’s children (there are none currently) – does this violate that ‘The beneficiaries of the trust must be identifiable’?
Trust has sprinkle provision for income and terminates when grandchild is 25 years old
Thanks for your help.
Greg Kozerski CPA, CFP
Permalink Submitted by Bruce Steiner on Sun, 2008-09-28 00:20
One would have to see the Will or trust agreement to answer your question. For more on this, see my article on this subject in the March 2004 issue of the BNA Tax Management Estates, Gifts & Trusts Journal: http://www.kkwc.com/docs/AR20041209132954.pdf