Trust as Beneficiary

[Guest PIDGE]

I have a deceased IRA participant that named his family trust as beneficiary. The Successor Trustee does not want to obtain a TID for the trust & wants us to use the 8 SS#'s of the trusts beneficiaries. But at looking at the trust, I do not see a list of the beneficiaries. Can this be done?

[Mary Kay Foss]

The final regulations indicate that the trust is the beneficiary rather than the beneficiaries of the trust. You can't ignore the trust, which is what the successor trustee seems to want you to do.

Although beneficiaries' SSNs is not one of the pieces of information that must be provided by 10/31 after the death, the successor trustee needs to provide information on a timely basis so that the trust is treated as a designated beneficiary (with a life expectancy). Failure to qualify may cause the RMDs to be distributed based upon the decedent's table life expectancy if he/she was receiving RMDs or the five year rule if he/she had not reached the required beginning date.

[BPickerCPA]

Add, to add to Mary's post, will leave the successor trustee very vulnerable to a lawsuit by the beneficiaries.

It doesn't pay to cut corners, IMO.

[Guest Taxwoman]

Mary,

I agree with you totally.

However, it seems Barry and Appleby came to a different conclusion here.

http://benefitslink.com/boards/index.php?showtopic=14747

( the situation is a little different becuase there were individuals identified a beneficaires of the trust) nevertheless...

Barry, you seem to agree with the PLR that the tax reporting must be done using the tax ID number of the individual named in the trust.

I think Appleby was questioning this ruling as it seemed to disagree with the regulations.

Angela

[Guest PIDGE]

Thank you for your input - it helped explain to succ. ttee, & I did get a TID for the trust.