Accumulating trust account using same Tax ID as retitled account ???

Submitted by Norman Cook on Sat, 2021-03-20 15:35

I am thinking about naming a discretionary trust as the beneficiary of my IRA. The beneficiaries of this trust will be my 2 children and 2 grandchildren.

I understand after my death my IRA will be split until 4 retitled accounts with their own tax ID number.

I also understand that the trustee will need to set up for each beneficiary an account to accumulate the withdrawals from the retitled IRA before the funds are distributed per the terms of the Discretionary trust. Question: should these accumulating accounts have a separate tax ID number from THE RETITLED IRA or can the use the same ID number for the appropriate RETITLED IRA ACCOUNTS?



Submitted by Bruce Steiner on Sun, 2021-03-21 23:06

If the trustees make distributions, wouldn’t each recipient put the money he/she receives into his/her own account?

Submitted by Norman Cook on Mon, 2021-03-22 17:26

yes, I am asking about the transfers from the retitled inhearited IRA into the ACCUMUNLATING IRA accounts before the funds are transfered to the final beneficiary by the trustee.

Submitted by gautam SHAH on Sun, 2021-03-21 23:48

what about estate and federal tax? will beneficiaries have to take in 10 years? what about gift or generation skipping tax?

Submitted by Norman Cook on Mon, 2021-03-22 17:35

My understanding is that ALL the Funds from the re-title inherited IRA must be withdrawn by the end of the 10th year. The funds that are sitting in the Accumulating Trust may stay there as long as desired by the terms of the trust agreement.The funds in the retitled inherited IRA account are included in the original Deceased owners estate. The funds in the accumulating trust will be included in the individual beneficiaries estate. However, I could be wrong on the above statements.

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