My father' s trust documents state that his IRA money was to be divided between three Universities. He wanted them to be charitable contributions to programs he supported during his life through RMD QCDs. Unfortunately his Merrill Lynch account had his trust being the beneficiary of his investments, including the IRA account. Our CPA has stated M/L needs to open Beneficiary IRA's for these institutions and roll the proceeds as stated in the trust, in order to not be taxed. M/L is refusing to create these IRAs, so now I am searching for alternative ways to give this money, in full to the charities without the trust or charities being taxed.
It has been suggested that M/L distribute the money accordingly, the estate would get the 1099 showing the distribution, but the CPA would provide K-1s to each of the charities, in the amounts they receive. As charitable programs, they would be exempt from paying taxes on this money. Is this a work around that would allow them to get the full amount intended by my dad's wishes, without either the trust or charities being taxed?
