It is true that the first RMD must be in the year the original owner passed away? My sister passed away suddenly. Our county is the one of the worst counties for probate in the state. It is likely that it will take at least two months to appoint an executor. At this point, I am not even certain where her accounts are held. She did have an IRA somewhere but wasn't old enough for RMDs. For now, I am just trying to get my feet under me, taking care of her pets and arranging a funeral.
It is true that the first RMD must be in the year the original owner passed away?Not unless the owner had reached 70 1/2 at the time of their death and hadn't taken a distribution yet. From IRS Pub 590-B:Distributions in the year of the owner's death. The required minimum distribution for the year of the owner's death depends on whether the owner died before the required beginning date, defined earlier. If the owner died before the required beginning date, there is no required minimum distribution in the year of the owner's death. For years after the year of the owner's death, see Owner Died Before Required Beginning Date, later, under IRA Beneficiaries. If the owner died on or after the required beginning date, the IRA beneficiaries are responsible for figuring and distributing the owner's required minimum distribution in the year of death. The owner's required minimum distribution for the year of death generally is based on Table III (Uniform Lifetime) in Appendix B. However, if the sole beneficiary of the IRA is the owner's spouse who is more than 10 years younger than the owner, use the life expectancy from Table II (Joint Life and Last Survivor Expectancy).My sister passed away suddenly. Our county is the one of the worst counties for probate in the state. It is likely that it will take at least two months to appoint an executor. At this point, I am not even certain where her accounts are held. She did have an IRA somewhere but wasn't old enough for RMDs. For now, I am just trying to get my feet under me, taking care of her pets and arranging a funeral.Sorry for your loss. IRAs don't have to go through probate as long as they have a named beneficiary, so if you are able to find the information on the IRA, you may not have to wait for an executor to be named.AJ
AJ, Thank you. I went back and re-read the information. It makes sense now. Hopefully, I will become more coherent. For now, my husband needs to verify all important decisions because I can't trust myself.
Very sorry for your loss, vkg.FuskieWho notes it's unfair to make anyone grieving to have to go through beaurocratic paperwork in the immediate aftermath of the passing of a loved one...-----Ticker Guide for The Walt Disney Company (DIS), Orbital ATK (OA), Titan International (TWI), Time Warner (TWX), Global Payments (GPN)Disclaimer: This post is non-professional and should not be construed as direct, individual or accurate adviceDisclosure: May own shares of some, many or all of the companies mentioned in this post (tinyurl.com/FuskieDisclosure)Fool Code of Conduct: http://tinyurl.com/FoolCode
If your sister had not yet reached her Required Beginning Date (RBD), which is April 1 of the year following the year she reached 70.5, then she will not have a Required Minimum Distribution (RMD). If she has reached her RBD she will have an RMD, and if she hadn't taken any or all of the RMD by the date of death, then the beneficiary of the IRA must withdraw it by the end of the year. If you are the sole beneficiary, then you must begin withdrawing RMDs not later than 12/31 of the year following the year of her death. Note: these are the MINIMUM, as beneficiary, you may withdraw as much of the inherited IRA as you wish.If the IRA did not have a beneficiary or the beneficiary had predeceased the IRA owner and if there is no contingent beneficiary, then the IRA will most likely become part of the probate estate. As you're finding out, probate is not a fun experience. Depending on your state and the size of her estate, you may be able to file for a small estate probate using an affidavit of assets, which is generally less costly and quicker than a full probate. You will most likely need the assistance of an estate attorney to make sure you do this correctly.BruceM
You will most likely need the assistance of an estate attorney to make sure you do this correctly.BruceM The lawyer who handled my FIL's estate has been contacted. I expected that it wouldn't be difficult to obtain court order to allow me to manage her bills. The lawyer quickly crushed that expectation. Probate for my father was in a different state and much easier.
Depending on your state and the size of her estate, you may be able to file for a small estate probate using an affidavit of assets, which is generally less costly and quicker than a full probate. You will most likely need the assistance of an estate attorney to make sure you do this correctly.I sure hope the estate is not in Erie County New York.My mother's will was drawn up for her by an attorney in the estates and trusts department of a large law firm. Her attorney was named as executor.It had to go to probate because one of the beneficiaries was her church. The probate court judge was corrupt and said the will was invalid because the witnesses were not present when my mother signed the will. The executor said (and the witnesses signed affidavits) that the witnesses were present when my mother signed, and the notary public who notarized the will also testified that they were all present when the will was signed.The judge refused that and appointed the daughter of a friend of hers to be administrator of the will, and awarded her $30,000 from my mother's estate for her services. However an administrator has no discretionary power at all: she must divide it equally among the living descendants (my two sisters and I). It surely did not require $30,000 to do that.That meant the church would get nothing (the will said the estate was to be divided into four equal parts, with the church getting one of the parts).It was pretty funny what happened, though it took several years to straighten out. Elliot Spitzer, attorney general of New York State at the time was the attorney representing the church (the a.g. is that for all charities in NY State) and he said the will was valid in his opinion. But he cannot normally overrule a judge (separation of powers).We straightened it out by getting my mom's executor to be named administrator instead of the judge's friend's daughter. We then agreed with Spitzer to each donate 1/4 of our inheritances to the church, and that was done.What I do not know is what happened to the judge, because my mother's estate was not the only one where she did that monkey-business. I hope the judge was impeached.
I sure hope the estate is not in Erie County New York. Wow, what a mess. Our county is slow but no indication of corruption.
So very sorry for your loss.Cut yourself a break. It's not an easy time. Glad your husband makes for a good sounding board.IP
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