dmertz
Level 15

Retirement tax questions

Why would an inherited IRA for the benefit of a trust be distributed to the decedent's estate?  It seems to make no sense that the decedent's estate would be the beneficiary of a trust.  The point of a trust is generally to keep assets out of the estate of the deceased.

Was the beneficiary of the IRA actually the estate of the deceased and not a trust?  Unless the decedent's estate was the beneficiary of the IRA, perhaps by default, it seems that there should have been no distribution made from the IRA to the estate.