Trust as beneficiary
Decedent is over age 70 1/2, death has occurred in 2014. Trust is named beneficiary. There are 2 individual beneficiaries of trust. Decedent dies before taking 2014 RMD. One decedent wants to
take her full share of IRA balance prior to 12/31/14, the other wants to defer distribution until 2015. What are correct procedures to accomplish this ?
Permalink Submitted by Alan - IRA critic on Mon, 2014-11-24 19:35
The decedent’s 2014 RMD must be distributed to the trust before year end. SInce this is decedent’s RMD for the year of death, it can be distributed from the trust to either of the trust beneficiaries, but the trust must maintain records of the remaining interest of the two trust beneficiaries. Going into 2015, the trust beneficiaries will no longer have an equal interest in the trust or IRA balance. In other words, this can be done and the IRS Regs allow it, but the trust accounting will be more complex as a result.