IRA Disbursement at Death
A deceased individual’s Revocable Living Trust has been named as primary beneficiary on an IRA where the individual has been taking an RMD. The Trust stipulates that all assets should be held in Trust for an individual with the income being distributed at least annually until her passing at which time the principal should be distributed to a charity.
In this scenario, would the IRA become a Trust IRA with the ‘income’ being distributed to the beneficiary for 10 years, at which time the balance would be distributed in full to the charity?
Permalink Submitted by Norman Cook on Thu, 2021-09-16 13:08
I am no expert but I think because the charity is not a person the 5 year rule will apply