Client deceased. He designated his IRA beneficiary with an insurance company (annuity) as a Trust for grandchildren. Can the ins co payout the entire amt to the trust (already set up) and it be treated as a rollover?
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No
It would be a non-spousal beneficiary who is also a non-natural person so the RMD payments must be made based upon the remaining life expectancy of the deceased (if RMD's were started prior to death) or within 5 years of the death if RMD's had not already begun.
Bad strategy because it hamstrings the intended beneficiaries. -
The trust meets all the rules to qualify for the exception as a qualified trust, and proceeds can be paid out over the lifetime of the oldest bene. (See previous thread on this.). The only thing I am worried about is the transfer from the insurance company annuity to the (Big Brokerage House) trust account. The Big Brokerage is the trustee, and have set up their own trust accounts. But it won't be an annuity.Comment
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