IRA owner dies after RBD, no designated benefiicary
If someone dies after their RBD and there is no named beneficiary, could the beneficiary of the estate take RMDs deceased based on the deceased life expectancy? Or is a full distribution of the IRA required?
If there is a trust involved with the estate (thought not named as beneficiary to the IRA) would this open up any options for the distribution of the IRA or are estate beneficiaries pretty limited in these kinds of scenarios? If the beneficiary was named in the trust, would this impact anything?
Permalink Submitted by Alan - IRA critic on Wed, 2017-03-01 23:53
The trust must be named on the IRA agreement as the beneficiary or it has no affect on the RMD calculation. In such a case with the estate as beneficiary, the RMDs would be based on the remaining life expectancy of the decedent. While it is possible for the IRA custodian to require a lump sum distribution, this should be enumerated in the IRA agreement. In that case, the executor would have to find another custodian to accept a transfer of the IRA and that may be rather difficult..