[WSBAPT] Issue with Testamentary Trust being the beneficiary of an IRA
James B. Dolan
jbdolan at jbdolan.com
Wed Jul 5 16:22:09 PDT 2017
Jenna:
Consider transferring the IRA to another company. I have run into this problem with Chase. I do not recall the exact IRC (401 and/or 402) that permits a “pass through’ or “look through” the trust to the beneficiary. Despite having letters from two CPA’s explaining this, Chase still would not do it, so my client simply transferred the IRA to a different company and they did it (I do not recall which company that was).
Good luck,
Jim Dolan
===================
Jones Butler Dolan, PS
www.jbdolan.com
www.jonesbutlerdolan.com
Mount Vernon
P.O. Box 2784
415 Pine Street
Mount Vernon, WA 98273
Telephone: 360-336-2939
Facsimile: 360-336-2949
Stanwood
P.O. Box 458
10027 - 269th Place NW (SR 532)
Stanwood, WA 98292
Telephone: 360-629-3833
Facsimile: 360-629-6253
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
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
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