Trust listed as Beneficiary of IRA
My aunt passed away and left her IRA with a The Private Trust as beneficiary. I am a beneficiary of the trust at a certain percentage. The Trust is saying that they will handle distributions over the next 10 years and manage the trust assets. What if I want to open an IRA Beneficiary account and manage the funds myself outside of the Trust? Is this possible? I cannot see anything in the trust document that would preclude me from taking this action and self directing my own funds vs having the trust control the assets for 10 years. The only thing I can see that would limit access is for beneficiaries under 30 for which I am not.
Permalink Submitted by Alan - IRA critic on Fri, 2024-07-19 10:03
If the trust provisions allow for distributing assets including the inherited IRA out of the trust, or gives the trustee of the trust the discretion to do so, the trustee with the cooperation of the IRA custodian could assign your portion of the inherited IRA out of the trust to your own inherited IRA. But this would have no effect on your beneficiary RMD requirements that would apply had your share been left in the trust. Those requirements depend on whether aunt passed pre or post her RBD, whether the trust is qualified for look through, and what other beneficiaries and their ages besides yourself are identified in the trust document.