Parent trying to decide on trust or individual beneficiaries
This is for WV. Dad is trying to decide the best way to handle passing accounts. They are thinking that a trust for everything would be better. But there are 3 traditional IRA accounts and 5 kids 65 to 40 in ages. I'm thinking everything like the house and property in a trust is fine but the IRA accounts might be better as individual beneficiaries. But not quite understanding the tax issues. Dad is already taking RMD's from them. If the IRA's are in a trust I've been reading some things that say the RMD rules for a trust depend on the oldest individual in it. But am I understanding that the IRA's after 2020 have to be liquidated after 10 years whether trust or regular beneficiary? If Dad passes when the oldest has to start taking RMD's would the younger ones be forced to also RMD every year or would they not need to other than the first year to make up for the fact the Dad would have had to RMD.
I guess I'm looking for a little more clarification on tax issues for IRA's and RMD's with regards to the younger kids. And I think the trust would need to be "see-through" and "conduit" since everyone is older and sound mind (mostly, lol).
Doing a bit more reading, if it's trust then the manager of the trust would have to do all the distributions for the next ten years or if not a trust the individual beneficiaries and everyone would handle their own RMD and cleanout of the the IRA for 10 years.