IRA – Donor Advised Fund & children as contignet benefic
In an IRA if you name the spouse (100%) as primary beneficiary and two chilrdren (35% each) and a donor advised fund (30%) as the contingent beneficiaries and both the IRA owner and spouse die simultaneously, will the IRA have to pay out to each contingnet beneficiary based on the donor advised fund life expectacy (I believe it’s 5 years) or will we have an opportunity post mortem to put the IRA into separate accounts and have each IRA payout based on the life expectancy of each contingent beneficary?
Permalink Submitted by Alan Spross on Wed, 2008-02-13 20:59
If separate accounts are created no later than 12/31 following the year of death, the life expectancy of the separate account beneficiary can be used for the year the separate account is created and thereafter.
Also, if the DAF or other non designated beneficiary’s share is distributed (or disclaimed) prior to 9/30 of the year following death, that beneficiary is not considered in determining the RMD of the remaining beneficiaries.