Inherited Tira

Submitted by Jon Welsh on Sun, 2018-02-04 18:55

Mother in law died and left her tira to my brother in law. Her will specified
assets to be placed in a trust for my brother in law, any suggestions or
comments on this situation would be appreciated. Have a meeting with
UBS next week, they hold the tira and I would like to give them the
best directions. Regards, Jon



Submitted by Alan - IRA critic on Sun, 2018-02-04 23:46

Her IRA beneficiary is unaffected by her will unless she left her IRA to her estate. What is the purpose of the trust? Is brother in law a special needs beneficiary?

Submitted by Jon Welsh on Mon, 2018-02-05 16:46

Thanks for the reply Alan, yes it is a special needs trust brother in law is disabled. regards Jon

Submitted by Bruce Steiner on Thu, 2018-02-15 20:31

  • Obvioulsy it would have been better if she had left her IRA directly to a trust for her son.  You should yell and scream at the lawyer who planned her estate.
  • While far from ideal, a few private letter rulings, including PLR 201116005, https://www.irs.gov/pub/irs-wd/1116005.pdf, have allowed a beneficiary of an inherited IRA to put the IRA into a special needs trust.  Unfortunately it will be a Medicaid payback trust.
  • Bruce Steiner, attorney

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