Deceased with a Pension account
Participant passed about 3.5 years ago. Participant had a will with a pour over provision that directed assets into a Joint Trust. The trust was drafted in the early 1990’s. Beneficiaries are surviving spouse and then equally to children (they are all adults now).
They came across a pension account. When working on the participant’s estate. The pension account did not have beneficiaries. They ended up opening probate about 3 years abo. The surviving spouse was unable to get this settled and unfortunately passed 2 years ago.
About 1 year ago, the oldest adult child became executor and successor trustee. The retirement assets are out of trust and into Estate Account with an EIN.
It sounds like the trust did not have the conduit provision or provision for the 10 years.
The executor is looking at distribution next month.
- Is there any way they could have 3 Inherited IRA’s opened up to transfer assets into? Would the adult child who is executor and successor trustee have authorization to do this?
- If so, I assume the 10 year clock started 3.5 years ago.
Thank you for your help in advance. Regards,
Permalink Submitted by Alan - IRA critic on Wed, 2024-07-17 23:46
There is no way to create an inherited IRA even if the pension has not yet been distributed. Of course, if it has been distributed to the estate, the executor will eventually distribute it to the estate beneficiaries.
Please advise if the pension has not been distributed because RMDs must be determined by the plan. For most plans there would just be a lump sum distribution made to the estate.