See Through IRA Trust
I was told by an estate attorney that if a Trust has a charitable intent(ie: $10,000 payable to a church) and the payment is made out of the trust prior to Oct 31st of the year following IRA owners death then IRS allows see-through benefits for IRA stretch purposes. Makes sense but wanted to know if anyone had heard this or had seen a ruling confirming this.
Permalink Submitted by Bruce Steiner on Tue, 2017-04-25 21:05
It makes sense, but why would anyone do that when they could simply name the charity as a beneficiary of a portion of the IRA on the beneficiary designation form? That would avoid the complexity of running the charity’s amount through the trust. It would also insure that the charity’s amount wouldn’t be subject to income tax.