Trust owned IRA to beneficiary IRA?
Assume a Father passes away and his Trust is primary beneficiary. Assume the Trust benefits his two daughters. An IRA is setup for each daughter with the Trust as owner. The Trustee of the Trust is the daughters’ stepmother.
If the stepmother as trustee agrees, can the daughters’ transfer or roll the Trust owned IRAs for their benefit to their own beneficiary IRAs?
Or is this question too dependent on the contents of the Trust document itself?
Permalink Submitted by Alan - IRA critic on Thu, 2016-05-26 18:39
Yes, it depends on the trust provisions and how much discretion is granted to the trustee. If separate inherited IRAs are created the RMD for each will remain based on the age of the oldest daughter, but each will be able to manage their own inherited IRA accounts. That may or may not work out to their advantage.
Permalink Submitted by Aaron Tanner on Thu, 2016-05-26 21:10
Thanks for the response.