IRA owner died 01/2017, post RMD. Owner did not list beneficiaries. His estate was probated. Will was a pour over will to trust. IRA is arguably a trust asset. Trust beneficiaries are two adult daughters. Trust does contain language on Retirement accounts, but it doesn’t indicate that account should be disbursed over oldest beneficiary’s lifetime.
What is the most tax deficient way to distribute IRA?
Am I correct in assuming to stretch out and no inherited Ira are viable options for the reason that the account is a trust asset and not payable on death to the trust?
I plan on telling beneficiaries that we should liquidate account and divide 50/50. They will incur a tax hit. IRA is approx. $260,000.