IRA Owner leaves Trust as Beneficiary
An IRA owner dies at age 87 on July 5, 2020. The beneficiary of the IRA was a trust.
Looks like we maybe able to stretch the IRA if the trust is a “look through” trust correct?
Who determines or whose responsibility is it to find out what type of trust it is?
If it’s determined that it is a nonqualifying trust then we follow the ghost rule and go by the deceased IRA owner correct?
Thanks!
Permalink Submitted by Alan - IRA critic on Thu, 2022-09-08 23:04
The trust provisions had to be submitted to the IRA custodian by 10/31/2021 as a requirement for qualification and the custodian would confirm that is contains the required provisions. If this was not done and the trust in non qualified, the ghost rule would apply, being the remaining single life expectancy of the deceased IRA owner. If the trust is qualified, the trust provisions could either result in life expectancy of the EDB beneficiary or the 10 year rule. For a conduit trust, beneficiaries other than the conduit beneficiary can be ignored.