Special Needs Trust as beneficiary
Client passes away with IRA. Names people and a special needs trust for son. Does the SNT qualify for EDB life expectancy RMD based on the beneficiary being disabled?
Client passes away with IRA. Names people and a special needs trust for son. Does the SNT qualify for EDB life expectancy RMD based on the beneficiary being disabled?
Permalink Submitted by Alan - IRA critic on Wed, 2025-02-26 16:33
Yes, as long as a separate inherited IRA account is created before the end of the year following the year the client passed, and the trust is qualified for look through treatment. It’s best if the other designated beneficiaries also create their own separate inherited IRAs by that deadline.
Per the recent Secure Act Regs, trust info is no longer required to be submitted to IRA custodians, therefore determination of qualified status is between the trustee of the trust and the IRS.
Permalink Submitted by Kevin Kennedy on Thu, 2025-02-27 06:46
Thank you Alan.