I continue to see more Trusts as Primary bene’s on IRA accounts and have some “look through” questions. I have a client whose Trust is named as Primary Bene of his Trad IRA. Upon his death, his assets(IRA and all other) are to be divided into 2 trusts(50% into each). One trust for his 2nd wife to pay her income of corpus equating to 5% and the other Trust for his 2 adult kids to be paid out over 10 years. His NW is 1 million and IRA is 50% of it. My experience is that the drafting estate planning attorneys may not always look at the logistics of dividing assets to create these 2 trusts upon IRA owners death!!!

Clearly there are 3 human income bene’s and no charities but don’t see how we can utilize the “look thru” provision in this case. It seems to me it would be easier to leave Trust as owner of Bene IRA and push the RMD to income bene’s.

I can’t find language to confirm that the IRA assets unless specifically addressed within the Trust document would need to prorate to each created Trust at death. For example purposes, the Trustee couldn’t move 100% of the IRA to Trust for 2nd wife and all “non taxable” assets to the Trust for kids. I assume the client can state in his Trust document his intent to have his IRA fund a particular Trust at his death and if not noted then it must be split pro rata???