withdrawal options on death

Submitted by mike silvers on Tue, 2022-10-18 15:26

my mother age 78 died and her IRA’s beneficiary was a trust (not a IRA trust I believe) and the money went to a new IRA bank account in the name of the trust. Bank is custodian

My dad age 79 and I are 50/50 beneficiaries of the trust. Can my dad rollover his portion of the IRA from the trust to his IRA? If no what options does he have?

What options do I have? The bank told me I have to pay tax on the entire amount since I was not a beneficiary of the IRA directly.

Thanks for your help



Submitted by Alan - IRA critic on Tue, 2022-10-18 19:52

  • It depends on what the trust provisions specify. Is this a conduiit or accumulation trust? Ask the attorney who drafted it and recommended it as the IRA beneficiary. If the trust is qualified for look through, the 10 year rule will apply with annual RMDs based on Dad’s age. If the trust is non qualified, the annual RMDs also apply but not the 10 year rule. It may require an expensive PLR from the IRS along with favorable trust provisions for Dad to be assigned his own inherited IRA and then do the spousal rollover.
  • Has the bank been provided a copy of the trust? This is required for the trust to be qualified with a deadline of 10/31 of the year following the year mother passed. Nonetheless, requiring a lump sum paid to you is not legally required unless their IRA agrement so indicates. 

Submitted by mike silvers on Thu, 2022-10-20 20:38

trust is not a IRA trust –   money was transfered to an IRA account in name of trust at bank.   Does that make it taxable when transferred?    Since account is IRA account in trust name what distributions are required?   Trust says nothing about IRA funds.thanks

Add new comment

Log in or register to post comments