IRA – incorrect beneficiary
Client went through the time and cost to have an attorney draft a trust however….
client mistakingly named children on the IRA beneficiary form (not the trust) although children are the benefciaries of the trust
Client has since died.
Question:
Are there any post-death strategies that allow the trust to inherit the T-IRA as oppposed to the children outright?
The only idea that I came up with was discliaming – however I’ve since found out the trust was not the contingent beneficiary either.
thank you in advance
Permalink Submitted by Alan - IRA critic on Mon, 2018-04-16 23:33
Disclaiming will not work, but perhaps the children will be better off inheriting directly. It depends on what the trust was supposed to accomplish and what the children are inclined to do now that they have direct access to the IRA funds.
Permalink Submitted by Mobey on Tue, 2018-04-17 15:41
I’ve had success – once – convincing brokerage to allow it to go to trust since kids were beneficiaries of the trust as well as the IRAs. However, Alan is correct, depending on the trust may very well be better off going to the kids directly.