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Final Disposition of a Trust’s Inherited IRA

How to make direct transfers to the beneficiaries.

When a decedent’s individual retirement account is payable to a trust under an IRA’s beneficiary designation, the day may come for the trust to distribute all of its interest in that IRA to the trust’s beneficiaries. When it does, custodians should routinely allow direct transfers to inherited IRAs set up for the benefit of each trust beneficiary entitled to receive a portion of the trust’s inherited IRA. It’s mystifying that some won’t. 


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