Does a required minimum distribution get passed down to a beneficiary in the event of the IRA owner's passing?

My late husband put his IRA into a trust and named me the beneficiary. Does the RMD remain in the trust or does it go to me?

IRAs, End of Life
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2 weeks ago
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With individuals as beneficiaries the rules are simple.  For a non-spouse, the beneficiary would establish an "inherited" or "beneficiary IRA" and would be required to take distributions every year over their own life expectancy.  They do not wait until retirement, age 70 1/2 etc...  But with a spouse, you take over the IRA as if it was your own all along and is now based upon your age & mortality tables.  So you wouldn't be required to take any distributions before 70 1/2.  Now the one thing that concerns me is you stated your husband "put into a trust?"  I assume you meant he made the trust as the beneficiary.  Trust can be a multitude of types and your husband could have triggered the entire IRA amount to be taxable. 

But there are a few types of trust, call "see-through" trust that allow for IRA assets to be held in trust & then MRDs will be distributed based upon the "oldest" beneficiaries life expectancy.  There are 4 specific requirements the trust must meet to qualify.  If it is just the spouse with no kids involved, it is fairly straight forward.  If kids are involved, which is usually the case and why the trust in the first place, it can get complicated. Then it must be determined whether it is a Conduit or Accumulation Trust to help determine the rate & amount of RMDs.  I hate to try to give complex estate advice as it would be 5 pages long and even then people would misconstrue at first pass (or even the second).  My advice is seek someone very competent in estate planning or reach out to the lawyer who wrote this particular trust.  If you want or need help, you can certainly reach out to me.  

Hope this gets you pointed in the right direction and sorry I couldn't be of more help.  This is just too complex of an issue without knowing the fine details or seeing the Trust first hand to even attempt to give you an accurate answer.

Best of luck, Dan Stewart CFA®

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