Alan and Bruce, THANK YOU for being great sources of information and taking the time to help those of us on the forum. My firm has struggled to find definitive answers about if the IRS rules allow the trustees of a qualified trust that is the beneficiary of an IRA, to remove the trust name from the inherited ira and create a new inherited ira for a trust beneficiary or multiple inherited ira accounts for multiple trust beneficiaries, then pass those out to the individual beneficiaries. Usually these are revocable trusts that also contain other assets which are being distributed to the trust beneficiaries after the grantors death. If the trust name stays on the inherited ira then the trustee will require that the trust has to remain open and that isn’t economically feasible for smaller ira accounts. Even in the case of a larger ira most of the trust documents don’t address keeping the trust open to accommodate the inherited ira (s).

In a previous post you mentioned that this could be done if the document contained the proper language and gave certain powers to the trustee. Is there an example of the proper wording on an irs website, plr, or any other document we can access? We have asked several local estate planning attorneys and can’t get a consensus on what is allowable. And it seems the various broker-dealers and insurance companies all have different opinions also. Help or thoughts?

Thank You again for the valuable information you provide to those of us out here trying to provide good information to our clients.