Trust as IRA Beneficiary
new client, 88 years old, has inherited IRA from newly deceased spouse, whom RMD had started.
Concerned about the tax effect to my new client when she passes
Her inherited IRA has 2 of her kids as beneficiary and a trust as beneficiary(3rd kid 100% beneficiary of trust)
Assuming its a qualified trust, and the state of trust location adopted UPIA.
Looks like distributions will begin year after death of owner and trust will use age of oldest trust beneficiary using single life table
As long as trust pays out 100% of income to beneficiary, I do not see a tax problem. Am I missing something?
Permalink Submitted by Alan - IRA critic on Wed, 2015-08-26 16:47
Permalink Submitted by David Castelli on Wed, 2015-08-26 18:08
got it, thanks Alan…..