In PLR 202035010, the Service ruled that an irrevocable trust qualified as a see through trust regarding IRA distributions under Reg. §1.401(a)(9)-4, Q&A-5.
In PLR 202035010, the decedent (“D”) established two trusts, one revocable and one irrevocable trust. D named the revocable trust as the beneficiary of his two IRAs. The revocable trust named D’s three children as beneficiaries.
After D’s death, an agreement the merge the two trusts was executed. According to the terms of the merger, the second trust assumed all of the first trust’s assets subject to the first trust’s liabilities.
The authorized representatives of the second trust represented that pursuant to state laws, the second trust’s trustees did not have any discretion at any time after the merger to alter any rights with respect to the assets of the first trust.
Here, the Service ruled that the assets of the two IRAs could be distributed to the beneficiaries using the remaining life expectancy of the oldest beneficiary.
Posted by Lewis J. Saret, Co-General Editor, Wealth Strategies Journal.