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Author: WPatch Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 74759  
Subject: Re: Inherited IRA Date: 1/3/2004 8:14 PM
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Should the new account for my Mom be titled as an inherited IRA (Benificary Distribution Account) or just be under my Mom's name?

It must be titled as an inherited IRA.

Since my Mom is 74 and has limited income (Ive been supporting her)she originally preferred that the distibution go to me (I was listed as a secondary beneficiary) so I could handle the tax side of things.


A well drafted durable power of attorney cpould insure that you be able to handle your mother's tax affairs as necessary for the rest of her life. A qualified disclaimer, however could be good tax and estate planning for you and your mother.

The asset and its income will not pass to her. Therefore, if you are supporting her, this income will not disqualify her as a possible dependent, possibly qualifying you for Head of Household treatment.

At the passing of your mother the additional assets of your mother may be subject to state inheritance tax or probate expenses.

If you mother requires Long Term Care with a smaller estate she will qualify for Medicaid sooner.

So, unless you are in a higher tax bracket(over 15%) and have no fear of funding nursing homes. I would respect the decisiion of your elder to disclaim the inherited IRA.

The timing of a qualified disclaimer is a matter of state law, may be made up to at least six months after death of IRA owner.
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