qbteachmt
Level 15

"The IRA was under a family trust with two brothers as the named beneficiaries"

Was? or Is? When was the death of the father?

The story as stated is confusing. An IRA isn't owned by the Trust from the beginning, so was the IRA put into the trust (as being beneficiary) upon death? That means the Trustee on behalf of the Trust took all the IRA actions and then did the disbursements. Someone needs to do a Trust return.

The Trust can have the IRA treated as inherited and make one account for each brother. Is there more activity or assets in the Trust than just this IRA? There are two different rules for this: 5-year or 10-year. The trustee probably should review all of this with the brothers.

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