Trust as an IRA Beneficiary
A Trust is the beneficiary of an IRA.
What happens when the IRA owner dies and the Trust is the beneficiary?
Can a Trust inherit the IRA? Does the account need to be distributed according to the SECURE Act?
A Trust is the beneficiary of an IRA.
What happens when the IRA owner dies and the Trust is the beneficiary?
Can a Trust inherit the IRA? Does the account need to be distributed according to the SECURE Act?
Permalink Submitted by Alan - IRA critic on Tue, 2022-05-03 19:00
Yes, the trust inherits the IRA and the trustee of the trust is bound by the trust provisions. With respect to beneficiary RMDs required of the trust, the Secure did not change the requirements for a trust to be qualified for look through under which RMDs are determined as if the beneficiary was an individual as opposed to a non indiviudal beneficiary. But the Secure Act has reduced the stretch for most trust beneficiaries to 10 years even when the trust is qualified. Certain trusts with trust beneficiaries such as the disabled, surviving spouses, and certain others, can still use their life expectancy as before.