Conduit IRA paying expenses for real estate held in trust
Trust holds real estate and Trust is beneficiary of a Conduit IRA. Main trust has no funds to pay the expenses of the real estate (taxes, maintenance and repairs). Is it allowable to pay those expenses from the conduit trust? I believe that funds coming out of the conduit must go to the beneficiary. Would theses expenses disqualify the conduit IRA?
Permalink Submitted by Bruce Steiner on Tue, 2018-06-12 02:01
One more reason not to use conduit trusts.
Permalink Submitted by Alan - IRA critic on Tue, 2018-06-12 02:23
Perhaps the trust needs to take out a loan on the property. You refer to a “trust”, a “conduit trust” and a “main trust” so it’s not real clear how many trusts there are.