The successor trustee (ST) of a decedent's living trust (LT) liquidated IRA accounts and deposited funds into a checking account; my understanding is that this will disqualify the distribution as an inherited IRA rollover. We have been making inquiries of the ST on various matters and she has suddenly gone silent over the last 3 weeks. If she has realized this is indeed an error, what is her duty to inform beneficiaries of this?
BTW, we are seeking a litigation attorney at this time, but geographic distance (CT/CA) is hindering our efforts. We are unsure of what kind of communication, if any, we should be having with ST in the absence of legal counsel.
The terms of the trust control what information and when it needs to be provided. If the trustee is still under court supervision, then the judge is the appropriate person to approach about what has gone on. What i dont understand is if the IRA is a rollover, who is it rolling over to? Only a spouse can get those funds as an IRA retirement fund, all other recipients get that as a distribution and it loses its retirement status.
The answers given are limited to the facts as given and presumed by the answer itself. Without seeing actual written documentation or having a conference to more fully explore the issues, this short answer has only limited application. Make sure to seek legal counsel and provide all documentation to get assistance in making informed legal choices. Bstein@dcfsz.com, 305 377 1505
You BADLY need to involve a CPA and/or tax attorney on this, RIGHT AWAY. It *may* be possible to correct this mistake, if in fact it was a mistake. But time is very much of the essence.
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