IRA Trust named beneficiary
FACTS:
Trust was named as sole primary beneficiary of a T-IRA
T-IRA owner, 75, died in 2015 before taking his RMD
Surviving spouse is to receive all trust income. In addition surviving spouse is more than 10 years younger than the deceased.
Kids are to receive principal upon mom’s passing
Attorney confirm the trust qualifies as a “look-through”
Questions
Who is responsible for taking the 2015 RMD? Trust? or surviving spouse?
Which table and whose life expectancy is used to calculated future RMDs for 2016 and later?
Does the surviving spouse as beneficiary have the option of doing an IRA rollover?
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2015-03-16 17:50
The trust must complete the 2015 year of death RMD because the trust is the only beneficiary. The 2015 RMD is the decedent’s calculated RMD which the decedent would have taken had they lived through the entire year. Starting in 2016, the trust RMD will be based on the oldest beneficiary of the trust, most likely the surviving spouse. The surviving spouse can roll over proceeds in certain cases but not when they are the income beneficiary as is the case here. It appears the purpose of this trust was to preserve much of the trust principal for the children named in the trust.