Whick table to use for Trust?
Decedent was already taking RMD’s upon his death. He named Trust a bene. Surviving Spouse is primary beneficiary of trust (income/principal interest for her lifetime).
To calculate RMD’s after this year (2008) for the Trust (assume it is a “see through”; and Surv Spouse is the oldest bene for RMD purposes) do I use the Single Life Table or the Uniform Lifetime Table OR do I get to pick and choose to see which one gives me the lower RMD.
I want to illustrate to the surviving spouse the tax savings and why we are going to have the trust disclaim and resurrect her as the primary bene (so she can roll over). I’m just not sure which table to use in my illustration.
Thanks in advance,
Rob Gilbreath
Attorney and Counselor at Law
Permalink Submitted by mk foss on Fri, 2008-11-21 19:06
The single life table is used to calculate RMDs for the trust-beneficiary. This could cause an RMD twice as high as the one you would get from the uniform table.
The uniform table is used by the original owner of the account or by a surviving spouse who has rolled over the account.
The age of the oldest beneficiary in the year after the death is used for the single life table. The age when the first RMD is required is used to start distributions with the uniform table.
Permalink Submitted by Al Fry on Fri, 2008-11-21 19:24
AND, with the single life table, unless it is a conduit see-thru, there is no recalculation (factor-1). With the Uniform Table, the spouse recalculates the age factor every year.