UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next
Author: ottnee One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76237  
Subject: What to do with IRA at death? Date: 7/4/2001 12:24 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
My wife has recently lost her father to cancer. He has an IRA worth over 1.5 million. The banker, (also his financial planner and executor of the will) wants to distribute this IRA money to the 7 heirs over the next 5 years. He claims we would pay less taxes this way as apposed to selling it off and distributing the money all at one time along with the rest of his estate. I believe he has an interest in this money staying with his bank as long as possible. Sad thing is he didn't do any estate planning. Question. If this IRA is all before tax money, does his estate have to pay income tax on it now that he passed away or does it acquire a new basis on the date of death like the rest of his investments? If it does acquire a new basis, why distribute the IRA money in lump sums over the next 5 years? PS. Due your estate planning. The government is getting 1 million of his 3 million estate.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (6) | Ignore Thread Prev | Next

Announcements

The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Value Hounds

Considerable Headwinds for Profire Energy?
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