we have a situation where a father passed away, Oct 2020. Daughter, T, is/was on SSDI and so they created a supplemental needs trust to be the beneficiary of his IRA. Daughter, T, sole beneficiary of this trust.
there was/is an inherited IRA, father deceased FBO the trust.
now through probate court decision, the supplemental needs trust has been dissolved. The probate notice is simple, there is this inherited IRA and a non-qualified account in the trust. It indicates a sum to be paid to the trustee, a sum to be paid to the attorney and the balance to be paid to daughter T
what the goal or question is, can the inherited IRA that had named the trust stay in place with daughter T as beneficiary, since she was the sole beneficiary of the trust?
Or, is this a taxable event that won't allow continued tax deferral in father's inherited IRA?
What may I be missing? Any input on distribution timing would be appreciated, too. I do not know the extent of why daughter T was on SSDI or if it is still in place. Her age 42, if that is needed.