“If sub-trusts are established for each beneficiary, presumably the IRA would have to be subdivided into a separate inherited IRAs, one for each beneficiary.”
demertz, I had a conference call with my attorney. Yes, he wants to create 4 SubTrusts and 4 new Trust Tax ID’s for each. There would be 4 separate Inherited IRA’s. My understanding is that these Tax ID’s would be used for the new SubTrust IRA’s and that equal 25% shares would be transferred to each of the 4. Is that correct? I am looking online at the Schwab form but I don’t seem to see a place for the new Beneficiaries if one of the 4 Beneficiaries dies. Would that be controlled by the terms of the Trust document and me as the Trustee and if one of the 4 died before fully distributed I would open up yet another SubTrust in the new Beneficiary’s name per Trust document?
