Inherited IRA inherited again by beneficiary’s trust – can it be re-titled for the trust’s beneficiary?
Charlotte inherited an IRA from her mother, which she properly re-titled to herself. Charlotte then passed away, designating her trust as the beneficiary of the inherited IRA. The question now is whether Charlotte’s daughter, who is the only remaining beneficiary of the trust re-title this inherited IRA and have the trust distribute the IRA to her intact? Edward Jones is the custodian of the inherited IRA, and they are saying it can’t be done because the trust was the inherited IRA’s beneficiary. They may be right, but I’m just trying to ensure they aren’t taking the path of least resistance.
This is a unique topic, and I can’t seem to find an answer online anywhere. Any insight would be appreciated.
Permalink Submitted by Alan - IRA critic on Wed, 2019-06-05 23:09
The trust is treated as a successor beneficiary and if the trust allows it, the IRA can be assigned out of the trust to the daughter as beneficiary of the trust. If EJ’s policies do not accept assignment that is their right, but these are not IRS rules. Jones may not want to make the effort to review the trust. The trustee of the trust can transfer to inherited IRA to another custodian who will cooperate if they can find one. Note that accomplishing this will not change the IRA distribution period (RMDs), as the trust must continue the RMD schedule that applied to Charlotte.