Custodian doesn’t allow non-US beneficiaries
I have a client who has dual citizenship(England and United States) and would like to have her siblings who are in England as Primary Beneficiaries on her IRA accounts. However, the current custodian that I’m working with doesn’t allow non-USA beneficiaries. Are there any workarounds or solutions to this dilemma other than moving the assets to a different custodian?
Permalink Submitted by Alan - IRA critic on Mon, 2024-03-04 21:25
Client will probably have to transfer the IRAs to one of the larger custodians, after checking with them in advance. While the normal withholding rate is 30% for distributions to non citizens, perhaps the US-UK treaty contains provisions that reduce that rate. Note that siblings other than those more than 10 years younger will be EDBs that can stretch beneficiary RMDs.