Mom passed away. She has some IRA's that she was taking Required Minimum Distributions. Would the estate be allowed tio cash these out and pay taxes on them rather than the survivors (3). The convential wisdom would be that the estate would be in a lower tax bracket than the survivors.
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Who is listed as the beneficiary? I believe it must go to the listed bene. I don't think that can be changed.You have the right to remain silent. Anything you say will be misquoted, then used against you. -
Survivors Take Over the Life of the Donors?
Does the survivors need to take the distribution lump sum and roll it over or can they take it over the life of the mom seeing that she was taking a RMD?Comment
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Zeros, check out pages 13-23 & 13-24 in The TaxBook. It lays out all the rules for each type of bene.Originally posted by zeros View PostYou have the right to remain silent. Anything you say will be misquoted, then used against you.Comment
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Ira
If the estate is the listed beneficiary, the distibution goes to the Estate. This way, the estate expenses can actually offset the taxable amount of the distribution that goes on the K-1.
I am not aware that the estate could take a minimum required distribution as that would keep the estate open for years.
BobComment
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That is correct. If the IRA names the 3 survivors as bene's, they get the money and have some options. Each of them will get a 1099R and it does not become part of the estate assets. If there is no bene listed, or the bene listed is deceased, or if the estate is named, the estate gets the money. It then is part of the estate assets, it can be used to pay expenses, and if any is left, is distributed to the heirs. The distribution of the IRA part of the assets will be taxable and shown on the K-1's as misc ordinary income (not subject to penalties.) No 1099R is required if the estate distributes. The custodian will 1099-R the estate.Comment
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