Trust is beneficary can I change to bene IRA for child | Ed Slott and Company, LLC

Trust is beneficary can I change to bene IRA for child

Have client who deceased. Trust is named as bene. Daughter is inheritating IRA can I make this a benefiacry IRA in her name?

That depends on the terms of the trust including the requirements to terminate the trust. The IRA custodian should receive a copy of the trust by Oct 31 following the year of death if it is qualified for look through treatment, which would enable the trust beneficiary (daughter) to use her own life expectancy to determine the RMD from the IRA. If the trust is not qualified, she cannot use her expectancy, but the distribution rate will depend on whether father passed before or after his RBD. If the trust can terminate and IRA custodian agrees, the IRA can then be assigned to the daughter, but the RMD will still depend on whether the trust was qualified or not.

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