[WSBAPT] Issue with Testamentary Trust being the beneficiary of an IRA

[Marcia Mellinger]

I wonder if a TEDRA reforming the trust language to allow RMDs to be issued would help.  Best ,Marcia


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Jenna Brozik <jennaprinzlaw at gmail.com>
Sent: Wednesday, July 5, 2017 2:31 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Issue with Testamentary Trust being the beneficiary of an IRA

List mates,

Here is the scenario.  The mother died leaving everything to her son in a testamentary trust.  (not living trust).  According to the trust, he received 1/2 her assets when he turned 25 and the remainder of the trust he is to receive at age 30.

He has now turned 30.  The mother listed his trust as the beneficiary of her IRA.  Now the company that runs the IRA is saying that since he is 30 he is to receive all of the IRA (at once with all the tax consequences) because that is the language of the trust.  They have refused to roll it over into an IRA in his name and they have refused to continue to give him the minimum distributions.

Does anyone have any suggestions?  There was already a probate which was closed last year.

Thank you,
Jenna Brozik
Attorney at Law
Prinz & Brozik PLLC
445 S Grand Ave
Pullman, WA 99163
(509)338-0908 / (509) 338-3527 (fax)
jennaprinzlaw at gmail.com<mailto:jennaprinzlaw at gmail.com>

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