Question about transferring shares to a beneficiary IRA
Custodian will not liquidate the assets inside the IRA now that the owner is deceased and will only divide up and transfer the assets to beneficiary IRAs. (The trust is beneficiary and the custodian is willing to see the trust as a pass through trust and transfer the assets to beneficiary IRAs). Is this a taxable event in any way? The fact that shares are being transferred instead of cash?
Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2015-07-02 22:06
Apparently, the trust provisions allow the trustee to distribute the IRA out of the trust to the trust beneficiaries. Whether the assets transferred to these inherited IRAs are cash or shares makes no difference. The transfer is not a taxable event as long as it is done directly and no check is issued to the beneficiaries.
Permalink Submitted by Jack Thomas on Thu, 2015-07-02 22:13
Thank you so much. Helpful info.