IRA left to beneficiary’s living trust
IRA Owner dies and leaves money to the grantor trust of his non-EDB beneficiary.
If this trust is irrevocable (but still grantor), does it qualify for the 10-year rule? An irrevocable grantor trust seems to meet all of the qualifications of a qualified/see-through trust as IRA beneficiary.
If the trust is revocable, does it fail as a qualified trust and get stuck with the 5-year rule?
If so, could the bene dissolve the trust before the beneficiary determination date and let the account flow to her name directly, getting her the 10-year term? Or would dissolution of the trust (the named beneficiary of the IRA) cause that beneficiary to fail and move to whatever contingent is listed?
Please and thanks.
Submitted by Robert Vashko on Mon, 2022-04-18 17:15