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Distributions from IRA to trust


Guest JBeck
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Taxpayer maintains a mutual fund IRA account and names a trust as beneficiary. The trust provides that part of the trust will be paid to several charities and part will be paid to a friend. After the death of taxpayer, can the friend take a distribution from the trust over his or her life expectancy provided that the distributions to the charities are made shortly after death? Or would the beneficiary designation have to be rewritten to provide for two trusts as beneficiaries, one trust with the charities and one with the friend as beneficiary (with no other nonperson as contingent beneficiary)?

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  • 2 weeks later...

If the trust is qualified, and the charities distribute their amount by September 30 of the year after the IRA owner dies, the friend will be able to distribute the assets over his life expectancy

Life and Death Planning for Retirement Benefits by Natalie B. Choate
https://www.ataxplan.com/life-and-death-planning-for-retirement-benefits/

www.DeniseAppleby.com

 

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