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

[Christopher Small]

You won't be able to roll it over into another IRA - that's only allowed
spouse to spouse.

Did the trust require minimum distributions up until now? Typically an
election is made regarding how the funds are taken when inherited (lump
sump; 5 year distribution; distribution over the life expectancy of
beneficiary).

I'd look at the language of the trust and if any elections were made. Maybe
trustee could "distribute" account to beneficiary by simply renaming owner
and allowing him to continue to take yearly distributions.

Sincerely,

Christopher Small
CMS Law Firm LLC <http://cmslawfirm.com>
150 Lake St. S., Suite 218
Kirkland, WA 98033
206.659.1512

On Wed, Jul 5, 2017 at 2:50 PM, Heather deVrieze <
heatherd at westseattlelaw.com> wrote:

> When did mom die? Has anything happened with the account after death?
>
>
>
> Heather
>
>
>
> Heather S. de Vrieze
> *Attorney-at-Law*
>
> *[image: cid:image001.jpg at 01D013C2.30F35160]*
>
> 3909 California Avenue SW
>
> Seattle, WA 98116-3705
>
> (206)938-5500 <(206)%20938-5500>
>
> heatherd at westseattlelaw.com
>
> www.westseattlelaw.com
>
> *Click here to connect with de Vrieze | Carney on Facebook: *  *[image:
> FB Logo]* <https://www.facebook.com/DeVriezeCarney>
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> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com] *On Behalf Of *Jenna Brozik
> *Sent:* Wednesday, July 05, 2017 2:32 PM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *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)%20338-0908> / (509) 338-3527 (fax)
>
> jennaprinzlaw at gmail.com
>
>
>
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