We had a client pass away and he named his trust as the beneficiary of his IRAs because his 2 daughters are minors. The daughters are equal benes in the trust. Per the instructions of the fund company, we transferred his account in to an inherited IRA owned by the trust. We were under the impression that was our initial step and then we were going to split the account in to 2 separate inherited IRAs (one for each daughter with a named guardian). We are now told that the trust has to remain the owner and if we split it into 2 accounts for the daughters this would make the accounts nonqualified. Does this sound right to you? If the owner stays as the trust, will we pay out 2 rmds with one going to each daughter but both based on the age of the oldest child? We want to be sure the final accounts are set up properly and the rmds are paid out correctly. Please provide us with your advice. Thanks!