Martial Trust INH IRA – what factor or life expectancy to use for 2025 RMD?
Hello!
Decedent passed away 2023; he HAD begun RMDs. His IRA bene was a Trust (now a Marital Trust that owns the Inherited IRA). The primary beneficiary of the Trust is the surviving spouse (who is more than 10 years younger) than the decedent. I do not know if this is an accumulation trust or if it has ‘see-though’ provisions. I’m trying to calculate the RMD for 2025. (The lawyer who drafted the estate plan will NOT call or email me back.)
The decedent’s DOB is 3/4/34. Date of death: 4/6/2023. Decedent was age 89 in 2023 and not sure if I use the 2024 table (Single Life, Table 1) or pre 2022 table for life expectancy? Bal of Marital Trust on 12.31.24: $1,339,917.63
Any help on which formula to use for the calculation would be most helpful.
‘Thanks to anyone who can shed some light and help!
Permalink Submitted by Alan - IRA critic on Tue, 2025-07-15 13:32
If the trust fails qualification for any reason, the beneficiary RMDs would be the ghost LE of the decedent, ie 5.1 divisor for 2024, then reduced by 1.0 for each year thereafter, so only 4 years left from this point.
Otherwise, there are too many variables that affect the RMD. Would need to know what the trust payout provisions specify in order to know whether it is a conduit trust or accumulation, and also to determine if there are any other countable beneficiaries in addition to the surviving spouse.
The only “simple” scenario applies if the trust is a true conduit trust with the SS as primary beneficiary. In that case, the spouse is treated in the same manner that they would be if named directly as beneficiary (no trust). The trustee of the trust can elect on behalf of the spouse for the spouse to be treated as the participant (Secure 2.0 Sec 327), in which case the Uniform Table for the SS age each year starting in 2024 will determine RMDs to the trust as long as the SS lives.
Permalink Submitted by Laura Seymour on Tue, 2025-07-15 15:44
Thank you, Alan!