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Financial Planning / Tax Strategies


Subject:  Re: inheriting stock Date:  2/28/2014  7:37 PM
Author:  inparadise Number:  120302 of 130004

Although small, one followup. About $30k is in his IRA. I think I recall a way to pass that free of taxes (temporarily). I'm sure the estate attorney will know, but more information is always better. Anyway, thanks again.

Who is the beneficiary on the IRA? If it is the estate, then IIRC, it has to be drawn down and taxes paid. If it is to an individual(s), then it can either be drawn down and taxed or rolled over to an inherited IRA subject to RMDs based on new owner's desire. Then the new owner only pays taxes on RMDs if they choose to go the inherited IRA route. I don't see any upside to making the beneficiary of an IRA the estate, but not a tax pro.

Now is also a really good time to check your dad's documents. We found out that Dad played estate lawyer, making changes to his will and trust via cross out, initial and witness, which invalidated them in the state he was living. Fortunately, we were able to reprint off the original docs and get them signed and witnessed, so that he had valid docs when he passed.

Not a fun time.

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