Trust as beneficiary?
Client has IRA account and has named Living trust as beneficiary with husband being primary beneficary of trust and 19 year niece as secondary beneficiaries….am i correct in assuming upon death of primary beneficary that the rmd would be over his lifetime for the 19 year old due to the fact that that he was the oldest of the named beneficiaries?
and if so, if we would have done a IRA inheritance trust would this have been avoided?
Permalink Submitted by Bruce Steiner on Fri, 2007-10-12 19:53
You’ll most likely be limited to the husband’s life expectancy since he’s a beneficiary of the trust. She could instead name her husband as the beneficiary, in which case he could roll it over into his own IRA, and possibly convert to a Roth. But he would then get control, and he might not leave it to the niece.
Bruce Steiner, attorney
NYC
also admitted in NJ and FL