Summary

In two unrelated rulings, PLRs 201210045 and 201210047, the Service ruled that a trust to which a decedent's IRA was to be distributed qualified as a "designated beneficiary."

Extended Summary

1. PLR 201210045

The trust document provided that the decedent's surviving spouse was to receive one-third of the trust's assets, with the residue to be divided among the decedent's surviving children. The Service ruled that:

1. the division of the IRA into separate shares by means of a trustee-to-trustee transfer would not be treated as a distribution; and
2. minimum required distributions from each of the shares were to be calculated with reference to the life expectancy of the surviving spouse.

2. PLR 201210047

The trust document provided that the residue, after payment of taxes and administration expenses, was to be divided equally between the decedent's two children. The Service ruled that:

1. the trust was a "see-through" trust, and thus qualified as a "designated beneficiary";
2. the division of the IRA into separate shares by means of a trustee-to-trustee transfer would not be treated as a distribution; and
3. minimum required distributions from each of the shares were to be calculated with reference to the life expectancy of the older of the two children.

CPC Commentary

In each case, had the decedent designated portions of the IRA to each of the separate trusts, minimum required distributions would have been calculated with reference to the beneficiary of that trust, rather than with reference to the oldest of several beneficiaries.

Relevant Documents

	201210047	3/9/12
	201210045	3/9/12
	Rev. Rul. 1978-406	3/1/07
	Reg. Sec. 1.401(a)(9)-9: Life expectancy and distribution period tables.	9/16/12
	Reg. Sec. 1.401(a)(9)-4: Determination of the designated beneficiary.	9/16/12