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<<<First off, if you let the trust inherit the IRA accounts, the RMDs change dramatically. Instead of continuing the relatively small annual withdrawals, the entire balance in the IRA will need to be distributed within 5 years.>>>

"Peter, I started to make a similar comment at the beginning of the thread, but when I looked in Pub 590 I found, to my surprise, that if the decedent dies after his required start date and leaves the IRA to his estate, the estate can continue annual distributions, based on the decedent's life expectancy (as adjusted). See page 36 of Pub 590.

It gets better, as in more complicated. Page 36 refers to the estate as the beneficiary. On page 38 there's a discussion of a trust as the beneficiary. Under certain circumstances the status of the trust's beneficiaries can be used to determine RMD's."

If the trust is "qualified" and I forget the definition in this context, and the financial institution holding the IRA account is not a horse's backside.

We ended need to engage an attorney to get the financial institution holding the IRA account to get them to do what we wanted, which was legal, but apparently far outside of such financial institution's experience or knowledge!

Regards, JAFO
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