IRS tRUST

[PHOTONANA]

My clien ts mother passed away. she has a trust. Her IRA is in the trust. Who pays the taxes on the IRA. My Client or the trust

[Lion]

Read the trust document.

[New York Enrolled Agent]

You say the IRA is in the trust. Do you mean the trust is the beneficiary of the IRA or is there an individual(s) who are the designated beneficiaries?

[Rapid Robert]

To clarify, do you mean the trust was named as a beneficiary of the IRA? There are some rules that if followed allow the beneficiaries of the trust to be considered designated beneficiaries of the IRA, so that they can pay lower tax on distributions spread out over time. But in any case, as long as the income is distributed from the trust, I think it would be taxed to the recipient, not the trust. Obviously paying tax on the entire balance in a single year at trust rates would be the least desirable outcome, but it should be avoidable.
[edit: composed before NYEA post, but not posted until after due to stepping away from desk]