RMD’s from Marital Trust
H names Marital Trust as beneficiary of his IRA. His W is primary beneficiary of Marital Trust, children contingent. H dies at age 45. Are RMD’s required from IRA that is now in the Marital Trust prior to what would have been H’s age 70.5 and if so, whose life expecatancy is the RMD based on? Thank you,
Steve F.
Permalink Submitted by Alan Spross on Wed, 2012-02-15 21:38
If the surviving spouse was the sole beneficiary of the IRA, RMDs would not have to start until H would have reached 70.5. However, trusts do not meet that requirement and therefore RMDs must follow either the 5 year rule or be based on the life expectancy of the oldest trust beneficiary, which appears to be the surviving spouse.
Permalink Submitted by Bruce Steiner on Wed, 2012-02-15 23:19
It may be possible to get the IRA to the spouse, in which case more possibilities will be available. See my article on that in the October 1997 issue of Estate Planning: http://www.kkwc.com/docs/AR20050125164755.pdf