Charitable Remainder Trust as Beneficiary

[Guest AJ Milano]

I have a situation were an IRA holder had died and the 2 beneficiaries are Charitable Remainder Trusts set up for his two sons.

The IRA holder was over 70 1/2 and already had taken his 2000 RMD. When the IRA is distributed, does the money have to be distributed to the Trusts directly and are the Trust issued a 1099R Tax form with their respective TIN numbers? Or does the money go to the beneficiaries of the Trust and the individuals are issued 1099 R's. Any help is greatly appreciated.

Sincerely, AJ Milano

[BPickerCPA]

The IRA must be paid to the beneficiary of the IRA. Since that is the trust, the IRA gets paid to the trust. The trust then does what the trust needs to do.

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Barry Picker, CPA/PFS, CFP

New York, NY