IRA trust paying trust expenses to Nonperson such as say a corporate trustee?
I understand for a IRA see-through trust for non-eligible designated beneficiaries all the beneficiaries must be living breathing people and cannot be a charity or different trust or corporation. Is there any problem with the IRA trust paying trust expenses to Nonperson such as say a corporate trustee?
Permalink Submitted by Alan - IRA critic on Sat, 2022-01-15 20:27
No problem. Trustees are not beneficiaries of the plan. Also, there could be a charitable beneficiary as long as it is paid off by 9/30 of the year following the year of death (the beneficiary determination date).
Permalink Submitted by Bruce Steiner on Sun, 2022-01-16 17:59
Instead of having a charity as a beneficiary of a trust that’s a beneficiary of the IRA, it would be simpler to leave a portion of the IRA to charity on the beneficiary designation form (or on a rider to the form).
Another trust may be a beneficiary of a trust that receives IRA benefits. For example, in the case of a trust for the benefit of a child, upon the child’s death the child’s trust could be payable to separate trusts for the child’s children.
Bruce Steiner