father named a trust as the IRA beneficiary
The father was the owner of an IRA and named a trust as beneficiary;The two daughters desire to divide the IRA onto two pieces and money to new custodians. What IRS letter ruling allows this to happen/ Do future RMD’s neeed to be taken on oldest trust benficiary?
Permalink Submitted by mk foss on Fri, 2009-02-06 23:24
There are many rulings that indicate that such a split is allowed. One of the first is PLR 200432027. 200432028 and 200432029 are the same situation for the siblings.
Natalie Choate has a sample letter, i believe, in her book to accomplish the split. Remember that the funds must be transferred to the new custodians – there is no rollover allowed.
The life expectancy of the oldest beneficiary must be used. That’s in the regulations as well as the rulings mentioned above.