Qualified trust – who can be the grantor/settlor?
Mom owns IRA. She dies, naming her son’s irrevocable grantor trust as IRA beneficiary.
Trust is irrev.
Benes are identifiable under trust language.
Trust is valid under state law.
IRA custodian has copy of trust.
No reason this trust can’t qualify as a designated beneficiary and get the 10-year window, is there?
So used to seeing the IRA Owner’s grantor trust listed as the bene on these things, but I don’t see why the bene’s irrev grantor trust wouldn’t be eligible for 10-year payout.
Permalink Submitted by Alan - IRA critic on Tue, 2022-08-30 16:56
The IRS Regs are silent regarding who the grantor of a qualified trust must be, and as you indicated the requirements for qualification are also silent. By naming a trust as your retirement plan beneficiary that your own attorney did not draft would appear to warrant very close examination to make sure that the provisions of said trust are appropriate for the beneficiary, and that the trust description is clearly identified on the IRA agreement as beneficiary.