Trust (named as IRA beneficiary)
Good Morning
I am looking for guidance/clarification regarding a trust situation.
Can a non-individual (i.e. charity) be removed as a trust beneficiary after the IRA account owner dies and before the September 30th following the year of death allowing the remaining beneficiaries (i.e individuals)the “stretch” using the life expectancy of the oldest beneficiary?
Also can a designated trust beneficiary disclaim?
Thank you
Permalink Submitted by Bruce Steiner on Thu, 2013-03-07 21:55
Depending upon the terms of the trust, and applicable state law, it may be possible to decant the trust to eliminate the charity.A beneficiary of a trust can disclaim his/her interest in the trust.I suggest consulting with tax/estates counsel.