Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next
Author: heart014 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121146  
Subject: Re: IRA beneficiary Date: 1/29/2002 10:26 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
The distribution for 2002 is taken as if your mother-in-law was still alive since she was alive on January 1.

Normally, if the distribution were taken into the estate, the estate would pay tax at its rate, but if assets are distributed to the beneficiaries, the income is generally considered distributed first. So, in either case, the beneficiaries will be paying the tax at their rates. This can be a tricky area of tax law and you (more importantly, the executor(s)) should seriously consider seeking professional advice before making any decisions.


I got it this time. My BIL is the executor. We have talked about professional advice, but we wanted to find out and know as much as we could before we contacted anyone.

The IRA will be titled something like "[Broker Name] custodian, [deceased name] IRA for benefit of [beneficiary name]" or "[Broker name] IRA custodian, [beneficiary name] beneficiary of [deceased name]"

That makes it clear.

Thanks Ira for your help.

Elliot - slow learner
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (11) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement