1. Is this allowed or do both accounts need to be in the name of the sub trusts?=========>>>>>>>Correct; upon a person’s death, the trust’d become irrevocable and splits into sub-trusts for each of his/her beneficiaries. Each sub-trust holds each beneficiary's inherited portion of the inherited IRA .However, when you name a trust as a beneficiary to an IRA , then, things may go wrong and that can be so expensive and is very complex. Leaving an inherited IRA to a trust will likely not make things easier or save on taxes. So, trusts create unique problems and tax complications even when executed perfectly. on;ly some good reason to leave IRA money to a trust is for the benefit of someone who can't be trusted with the money. Leaving an IRA to a trust is different from putting other assets into a trust after death. I guess you need some professional help from an attorney with expertise.
2. Does each individual's RMD equal the calculation for the oldest individual or is that amount divided by 2 with each individual receiving 1/2 of the RMD?=====>>>>> since there is more than one underlying beneficiary of the inherited IRA, the RMD could only be stretched out over the calculated estimated lifetime of the oldest beneficiary. only the trustee calculates theRMD required to be taken from the IRA based on the beneficiary's age. Each of the two sub-trusts is able to be set up as a conduit trust, in which the RMD flow directly to the beneficiaries, or an accumulation trust, in which the distributions stay inside the trust.