Can executor assign remaining RMDs to a trust?
Anyone see a (major) problem with this?
IRA owner dies with his estate as sole IRA beneficiary.
The estate pours in to a trust.
The executor then instructs IRA Trustee to make remaining RMDs (deceased owner single life table – one each year) payable to the Trust each year.
The executor can close the estate and 1099-Rs will go to Trustee.
Appreciate any thoughts on this.
Thanks
Permalink Submitted by Al Fry on Tue, 2007-10-30 23:10
How old was IRA owner when he died?
Permalink Submitted by Scott O'Donnell on Wed, 2007-10-31 13:45
The IRA owner was born in 1923, so was well into required distributions.
Permalink Submitted by Alan Spross on Thu, 2007-11-01 02:06
I don’t see any problem. Of course, the RMDs cannot consider the life expectancy of any trust beneficiary because the trust was not designated as beneficiary on the IRA agreement.