Trust as benificiary
IRA owner named his Irrevocable Deed of trust as beneficiary of his IRA. Owner died and for years the RMD properly went to the trust and out to the benificiary. When benificiary of trust reached age 45 and was free to take everything out of the trust, the trustees resigned and had the benificiary sign a release and closed the trust. Clearing firm is saying that with the trust closed the money must be paid out as a lump sum to the benificiary personally and of course this would trigger a huge income tax bill. Any relief?
Permalink Submitted by Bruce Steiner on Tue, 2015-01-06 19:29
Move the inherited IRA to a different financial institution, one that uses a different clearing firm.
Permalink Submitted by Alan - IRA critic on Tue, 2015-01-06 20:42
Here is an article explaining assignment of an inherited IRA out of the trust to the beneficiary. Link includes suggested letters, but if they resist, a direct transfer to another custodian should be pursued. http://www.ataxplan.com/bulletinBoard/ira_providers.cfm
Permalink Submitted by Donald L Born on Tue, 2015-01-06 21:12
Thanks Alan. That gives me the answer. Fidelity will get the business and Pershing loses it. Don