Trust as beneficiary of IRA

[BKuhn]

A husband had a traditional IRA at age 77 and passed away. His revocable trust was the primary beneficiary. The trust says his wife can use the trust's money for income for her life and the residual goes to his kids. Over what period must the IRA be distributed to the trust?

[alan-oniras]

Assuming the trust is qualified for look through treatment, the RMD paid to the trust is based on the longer of:
1) The life expectancy of the oldest trust beneficiary. In a second marriage situation, it may be possible that one of "his kids" could be older than his wife.
2) The remaining life expectancy of the decedent. But that could not apply here since his kids are obviously younger than he was.

[bsteiner]

With enough disclaimers, it may be possible to get the IRA to the wife so she can roll it over. See my article on that subject in the October 1997 issue of Estate Planning: http://www.kkwc.com/docs/AR20050125164755.pdf.