IRA Trust beneficiary
Say there is only one IRA trust and there are three primary beneficiaries in the trust ages 25, 22, and 19. However there is a contingent benefiary in the trust which is a charitable organization.
WHAT WOULD BE THE DISTRIBUTION REQUIREMENTS WHEN THE IRA OWNER DIES?
Permalink Submitted by Bruce Steiner on Wed, 2013-05-08 02:34
It depends on the terms of the trust, but most likely it would be payable by the end of the 5th calendar year following the IRA owner’s death if the IRA owner hadn’t reached his/her required beginning date, or over the IRA owner’s life expectancy as of his/her death (as if he/she hadn’t died) if the IRA owner had reached his/her required beginning date.For more on trusts as beneficiaries of retirement benefits, see my article on this subject in the March 2004 issue of BNA Tax Management’s Estates, Gifts & Trusts Journal: http://www.kkwc.com/docs/AR20041209132954.pdf.If this involves a living IRA owner, he/she should consult with tax/estates counsel to determine how best to accomplish his/her objectives. If this involves a deceased IRA owner, the trustee should consult with tax/estates counsel to ascertain how best to proceed.