Split Inherited IRA into three

Submitted by Brian Baker on Tue, 2020-06-30 04:04

We have an Inherited IRA from 2016 that named our Dad’s Trust as the beneficiary. Mom passed away prior. The Trust is a see through conduit trust. The beneficiaries are two individuals and a special needs trust for the third individual. Can we split this Inherited IRA into three Inherited IRA’s and continue to use the oldest beneficiary for RMD calculations? Any other items to consider here?



Submitted by Bruce Steiner on Tue, 2020-06-30 13:29

  • If the trust was for Dad’s benefit, what is the relevance of Mom’s death?
  • We’ve divided trusts many times.
  • Does the Will ot trust agreement allow the trustees to divide the trust?  If not, does applicable state law allow the trustees to divide the trust?  If not, does applicable state law allow the court to divide the trust?
  • Is it possible to divide the trust in a way that keeps the beneficiaries’ interests the way they are now?
  • Was there a reason for having a single trust that would be defeated by dividing the trust?
  • Bruce Steiner

Submitted by Brian Baker on Tue, 2020-06-30 13:50

No relevance for Mom’s death. Just thought that might be a factor. The trust is a see through trust so I think the bigger question is whether or not we should dissolve it? My big question is still whether or not you can divide an inherited IRA into three inherited IRA’s? I don’t think there is language about dividing the trust. Thanks

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