I have a see-through conduit trust named as sole bene on Dad’s IRA. Dad’s three kids are sole equal-share benes of that trust. Dad died earlier this year.

Trust language does not provide for any sub-trusts. Kids want to break up bene account three ways, take their respective share as a bene IRA account in their own name, and take RMDs based on their own respective life expectancies.

My understanding is that all of these requests cannot be accomplished. I believe that the best we can do is 1.) wait for the trust to dissolve; 2.) then split the account up three ways, with each kid named as owner on their own respective bene IRA; but 3.) all accounts must keep stretching based on the life expectancy of the oldest trust beneficiary.

Am I right on that? OR if the trust dissolves before the end of the year, could we allow each kid to stretch on their own L.E.?

Please and thank you!