Distributing Two IRAs and a Brokerage Account After Death
I am in my 70s with a traditional IRA, Roth IRA and regular brokerage account. The brokerage account is titled in my Trust. All three accounts are in the custody of the same firm. All three are composed of stocks and cash. Upon my death, I have directed the Trustee of my estate to liquidate all the holdings in the three accounts. My question is, can the firm give him a single check for the sum of the three accounts and make the check out to my Trust? The Trustee would then open a bank account in the name of the Trust, deposit the funds and distribute them according to my wishes. Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2024-04-29 22:11
If the trust is the named beneficiary for the IRA accounts, the trust will inherit them, with RMDs depending on whether the trust is qualified for look through or not. Are your trust beneficiaries individuals or charities? If individuals, this plan will have negative tax consequences.
The two IRAs would also have to issue a separate distribution check.