Feb 5

Or can the trust combine them and either A) accept the distribution and pay the tax, or B) split them equally between 12 beneficiaries?


one comment so far...

  • waggy_33 Said on February 5th, 2010 at 6:19 pm:

    The trust could combine the three accounts. The trust must take the required minimum distribution each year and distribute the income to the beneficiaries based on their percentage of the trust. The required minimum distribution is based on the life expectancy ofthe oldest trust beneficiary. The trust would not pay tax on the distribution and you would not want the trust to pay the tax since a trust reaches the top bracket of 35% at $9,300 of taxable income.

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