Secure Act Trust Question
Hello,
Can you look a the following scenario and let me know what your thoughts are on it?
A qualifying (look-through) trust is listed as beneficiary of an IRA. However, the underlying beneficiary of the trust is a minor. Since the underlying beneficiary is a minor, can they stretch until age of majority? Or, since the trust is the beneficiary, would they just be stuck with the 10 year rule?
Thank you
Permalink Submitted by Alan - IRA critic on Wed, 2020-12-09 18:38
If the minor is the child of the owner (an eligible designated beneficiary until the age of majority) is the beneficiary of a conduit trust, the minor’s age can determine the annual RMD, however if the trust is an accumulation trust then the 10 year rule likely applies, since the minor cannot be considered an eligible designated beneficiary unless they are the sole beneficiary, and they would not be the sole beneficiary of an accumulation trust.