Resident Tax Release

[joehart]

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

I was looking for the laws for transferring inherited assets to a beneficiary.

I have a situation where a traditional IRA was in a Trust, however the beneficiaries were the children instead of the Trust/surviving spouse. Can this money still be managed by the Trust? A Resident Tax Release form?

Thank you.

 

[Zigner]

It would seem to me that the beneficiaries are entitled to the proceeds.

 

[FlyingRon]

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

I was looking for the laws for transferring inherited assets to a beneficiary.

I have a situation where a traditional IRA was in a Trust, however the beneficiaries were the children instead of the Trust/surviving spouse. Can this money still be managed by the Trust? A Resident Tax Release form?

Thank you.

You've lost me. How was the IRA in a trust? The beneficiaries are the beneficiaries. You can't change that the beneficiaries now (trust or otherwise). The Ohio resident tax release has no bearing on this at all. Just what the beneficiaries options are depends on the age of the deceased and the beneficiaries. However, the beneficiaries either need to disclaim their inheritance or it needs to be transferred to a beneficiary distribution account (for each beneficiary) also called an Inherited IRA.

 

[tranquility]

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

I was looking for the laws for transferring inherited assets to a beneficiary.

I have a situation where a traditional IRA was in a Trust, however the beneficiaries were the children instead of the Trust/surviving spouse. Can this money still be managed by the Trust? A Resident Tax Release form?

Thank you.

You MUST see a tax professional. From what you've written, this is a complex situation regarding RMD's and how you want to deal with the situation and management. I don't know anything about the resident tax release so you will have to wait for another person.

See also:
http://www.trustetc.com/equity-university/letter-rulings/letter-ruling-200008044.html
http://www.irs.gov/pub/irs-wd/1038019.pdf

 

[FlyingRon]

Tranq, all the resident tax release does is indicate money form an estate account has been distributed to one of the heirs. It is entirely immaterial here.

 

[curb1]

What was the exact title of the IRA account?

 

[anteater]

What was the exact title of the IRA account?

Not really relevant. No idea what the OP means by "... a traditional IRA was in a Trust." But a trust can't be the owner of an IRA.

A trust could be the beneficiary of an IRA. But the OP seems to indicate that the IRA beneficiaries are the children.

 

[curb1]

I agree. That is what I was fishing for. The wording/ownership on the IRA would not indicate that it was a trust account.