[WSBAPT] Post Secure Act Question

[Marcus Fry]

Jacob:
If IRA owner died before required beginning date, it would be the 5 year rule.  However, since he was 73 (after the required beginning date), you utilize the owner’s life expectancy for the remaining term.  This was from materials from Robert Keebler’s presentation a few months ago.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.
P.O. Box 1689
Yakima, Washington  98907
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From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Jacob Menashe
Sent: Tuesday, September 15, 2020 4:57 PM
To: WSBA Probate & Trust Listserv
Subject: [WSBAPT] Post Secure Act Question

I have a post-Secure Act question that I thought there would be an easy answer to, but I sure can’t find it.

John is 73 and names a trust, to benefit Joan, age 50. The trust is not a see-through trust (let’s say it has a charity as the remainder beneficiary). Prior to the Secure Act, the answer would be, I think, easy, we’d use John’s life expectancy (and not Joan’s longer life expectancy) for the RMDs.

But what happens now under the Secure Act? We don’t get the 10 years we’d get if the trust was a see-through trust. I get that. But it wouldn’t make sense for the default to be John’s life, would it, since his life expectancy is longer than 10 years.

So what’s the answer? 10 years since John’s life expectancy would be longer? If John was under age 72 it might be five years, but he’s past his required beginning so that rule shouldn’t apply, should it?

I look forward to hearing responses on this because I figure there has to be an answer to this, even if I’m not finding it.

Thanks!

Jacob Menashe

Jacob H. Menashe
Hickman Menashe, PS
4211 Alderwood Mall Blvd., Suite 204
Lynnwood, WA 98036
(425) 744-5658 phone
(425) 744-6078 fax
Satellite Office in Bellevue
www.hickmanmenashe.com

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