IRA distribution to a QTIP TRUST after spousal death
Can a QTIP TRUST receive an IRA distribution after the spouses death and pass it on to the remainder beneficiary along with a k1? If yes, would a new trust and tax ID# eventually have to be set up for the remainder beneficiary or can it continue for him as a non-QTIP with the same tax ID#? All the provisions are spelled out for the remainder beneficiary in the original QTIP Trust except whether an actual new trust and tax ID# must be created. Thank you.
Permalink Submitted by mk foss on Tue, 2010-12-14 22:18
If the QTIP Trust does not terminate at the death of the spouse/benefiicary, you can continue to use the same ID number. It’s possible to change the trustee by checking boxes on Form 1041. You can also change the trust name. Often new beneficiaries are listed once the original beneficiary passes away.
The RMD schedule for the IRA does not change iwth the death of the original beneficiary – no problem with having the distributions continue to be paid to the QTIP Trust.
Permalink Submitted by Harold Porter on Sun, 2010-12-26 06:51
How would you go about changing the trust name?
Permalink Submitted by mk foss on Wed, 2010-12-29 23:48
Just notify everyone where the Trust had accounts of the new name – and then file Form 1041 with the new name and check the box indicating a name change.