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

[James B. Dolan]

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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