IRA of Decedant

[erchess]

My client's father died in Louisiana just within the last few weeks. She has not mentioned her mother to me so let's assume that somehow her mother is out of the picture due to divorce or death. Whatever the Father left is apparently to be split evenly among the children. I do not know how many children there are. The Father's major asset apparently was a rather large IRA. The estate is going to be settled by another sister. My client does not know whether her Father had a will but she doubts it She says that this sister files her taxes online without help and my client assumes that she will attempt to settle this estate without paying a professional. However, the sister told my client that she had been told by someone that she should roll the IRA over into another IRA to save on taxes and she asked my client to ask me whether this is so. Of course I said no. I have a major meeting with this client on Monday 2 March 2008. I have two questions for this group.

Does anyone have any advice for me on how I might persuade this sister to seek professional help? Since I am in NC and know nothing about Estates I will not take on the job. What kind of professional should be sought out? I was thinking a tax attorney in case there is any probate or other court filing but I realize that most of the work could be done by a CPA or EA who could probably recommend a probate attorney if one were needed.

Next question, where in TTB can I find the options that an executrix has with respect to an IRA and the impact each option would have on the recipients. My client's principal concern is that she does not want to lose her SSI and I have told her that I don't think any sort of inheritance would have that effect..

[veritas]

The IRA

will go directly to the beneficiary or beneficiaries. Although sometimes I have seen where they went to a trust which is nuts.

There won't be any probate of the IRA as long as a beneficiary is named.

[taxmandan]

To answer your first question, I would try to scare the begeezuz out of the sister by explaining the legal responsiblity of the executer of the estate if things get screwed up. She has serious legal responsibilities that mean she could have to pay any penalties, etc. if things aren't done correctly. Most tax preparers won't even do estate tax returns, for her to even think she could, is crazy.

Question two: TTB p.13-24, for how inherited IRAs can be handled.