Death of the Beneficiary of GST IRA
My adult client was the beneficiary of his deceased’s mother GST and the GST was the beneficiary of her IRA. The mother passed away several years ago and the adult son was taking RMDs based on his remaining life expectancy. The adult son just passes away and the successor beneficiary of the GST is the son’s two minor children.
Do the RMDs that now go to the minor children get calculated under the deceased’s beneficiary’s remaining life expectancy until the children reach the age of majority, or do the children now have 10 years to withdraw the full account? Also, I assume the IRA can be split for each child, although both still titled as an Inherited IRA to the GST?
Thank you!!!!!!!
Permalink Submitted by Alan - IRA critic on Wed, 2021-02-17 18:43
They cannot be treated as EDBs since client was treated as a designated beneficiary of a qualified trust. The Secure Act states that when the designated beneficiary passes after 2019, the successor beneficiary will be subject to the 10 year rule. The terms of the trust determine if the trustee can assign the IRA out of trust to the children.