IRA left to Trust
We have a client whose father passed away in 2019, pre-Secure Act. He listed his Trust as the IRA beneficiary, which stated that all assets should be split evenly into two inheritance Trusts for the benefit of each one of his daughters. The account was held at another custodian up until this point and was only ever transferred into an inherited IRA in the name of the original Trust, but not split for the beneficiaries into two inheritance Trusts. A few questions:
Is there still time to transfer the assets into the correct inherited IRA Trust accounts?
Since the beneficiaries of the original Trust were two inheritance Trusts, how are the RMDs calculated?
Permalink Submitted by Alan - IRA critic on Tue, 2023-08-01 14:22
The trust can still be split, but it’s not clear if the original trust was qualified for look through or not and that determines the RMDs. If the trust was not split yet, that may also mean that the trust info was not submitted to the IRA custodian by 10/31/2020 and that is required for the trust to be qualified for look through. Therefore, need to know if trust was qualified and if not if father passed prior to RBD or not.