[WSBAPT] Post Secure Act Question

[John Creahan]

Hi Jacob,
As I understand it, the Secure Act did not change the distribution rules for an inherited IRA payable to a non-designated beneficiary where the participant was older than 72. So, yes, the surviving spouse will be able to use H’s life expectancy, even if it results in a payout longer than 10 years.
Hope this helps,
John

John Creahan
www.cairn-law.com<http://www.cairn-law.com/>
206-578-5877
Fremont office:
3417 Evanston Ave. N, Suite 312
Seattle, WA 98103


From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Jacob Menashe
Sent: Tuesday, September 15, 2020 4:57 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
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

CONFIDENTIALITY: The contents of this message and any attachment(s) may contain confidential or privileged information. Any disclosure, copying, distribution, or unauthorized use of the contents of this message is prohibited and doing so may destroy the confidential nature of the communication.  If you have received this message by mistake, please do not review, disclose, copy, or distribute the e-mail.  Instead, please notify us immediately by replying to this message or telephoning us at (425) 744-5658.
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20200916/0d7b1b00/attachment.html>