Inherited ITA

Submitted by gautam shah on Wed, 2024-02-07 21:46

If I want to split my IRA after my death between my spouse my child my grandchild and want them to take RMD only how to achieve. I am taking RMD MY SPOUSE IS 71 my child is 42 and grandchild is 3.. spouse gets 50 percent other two 25 percent each



Submitted by Alan - IRA critic on Thu, 2024-02-08 17:00

  • They can each set up separate inherited IRAs, and your spouse then assume ownership of her inherited IRA. You cannot limit the amounts that any of them can withdraw unless you leave your IRA to an accumulation trust under which the trustee of that trust must adhere to the limitations that you have included in the trust. If that trust (or separate trusts) accumulate income, that income will be taxed at the higher trust rates. In addition, if your wife inherits through an accumulation trust, the Uniform Table cannot be used and she will not be able to roll her share over to her own IRA or convert any of it to a Roth IRA. 
  • As to which of these many options is suitable for you, you should consult an estate and trust attorney. Comments made here are only general in nature and should not be used to construct a personal estate plan.

Submitted by gautam shah on Fri, 2024-02-09 10:06

Thank you. Appreciate clarification. Does my spouse need to give consent for designating beneficiaries other than her our child or our grandchild

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