IRA beneficiary designation

[FBN2007]

What is the name of your state (only U.S. law)? MA

My father named his Massachusetts nominee trust as beneficiary of his IRA. The beneficial interest of the nominee trust is another trust (trust A). Trust A names my brother and I as beneficiaries. Can we do a stretch IRA under this scenario. It seems to me that Trust A should have been named directly. All of his assets were titled in the name of the nominee trust which I am in the process of re-titling to Trust A with a new tax ID number.

 

[tranquility]

The rules are quite complex regarding the naming of a trust as an IRA beneficiary. Even before talking about what can be done, it would need to be known if the trust(s) are "qualified" trusts and if distributions have been started. You need to see a tax professional to determine the best course.