Trust for inherited IRA?
I have a two siblings, and a parent with an IRA. My parent plans to leave all of us a third each. However, for whatever is left to me, I would like to potentially disinherit part of it, and allocate it to my children. This seems like something not able to enter as a simple beneficiary designation on a brokers beneficiary form.
Is the solution to set up a conduit trust, and instead of my name as the 1/3 beneficiary, the trust would be the beneficiary for the 1/3?
Thanks.
Permalink Submitted by Alan - IRA critic on Fri, 2023-01-13 23:51
A trust is not needed. You should have the parent name your children as contingent beneficiaries on your share. When you inherit, you can file a full or partial disclaimer within 9 months and the amount you disclaim will be inherited by your children as designated beneficiaries. Most IRA custodians should support naming a contingent for a certain primary beneficiary. Showing your name “Per stirpes” will also allow you to disclaim and your children will inherit your share. And if you pass before the parent, the children will also inherit under per stirpes. .