IRA owner died in November 2024.  The beneficiary to his IRA is his Revocable Trust.  The trust beneficiaries are seven adult nieces and nephews who are named in the trust.  The trust directs the trustee to distribute the trust assets to the beneficiaries at his death.

There are no specific directions in the trust on how the IRA should be handled.  There are other (non IRA) assets in the trust that can be used to pay the trusts final expenses.

The decedent did not take his 2024 RMD.

The custodian is suggesting setting up 7 separate inherited IRAs for each of the beneficiaries before 12/31/24 so each beneficiary can take the decedents RMD by the end of the year.  The trustee is being advised by the custodian that he can transfer the IRA out to each beneficiary pro- rata.  This would allow the trust to terminate within a few months.

Is this transfer permitted without specific guidance in the trust?  Can the IRA be subdivided via a transfer into 7 separate inherited IRAs in the name of the decedent for each nephew/niece’s benefit?

Does the fact the assets need to be distributed at the owner’s death make the trust a look through trust?

The trust is valid under state law, The trust irrevocable at the decedent’s death, The beneficiaries are identifiable.