It can then be re-invested at the new institution from the cash form it transfered in from, in any way and at any time you choose at that point.
This is commonly done using money market accts to contain the cash.
If you’re planning to leave an IRA in a trust, it’s best to bring in an attorney as part of estate planning in order to make sure beneficiaries can have the full use of the IRA as intended.
Don’t sign anything that’s confusing without expert help (and expert second opinion). If the entire estate of the decedent was subject to the estate tax, inheritors of an IRA will get an income tax deduction for the estate taxes already paid on the account. Even if we believe our departed loved one had the best intentions, it’s true that the beneficiary forms can be limiting.
Spouses can also roll the IRA into their own accounts, taking over the decision-making and naming the beneficiaries they choose. Nonspouse beneficiaries have to take the money out of the account eventually.