IRA status change post death & RMDs
Deceased (collecting RMDs) left IRA to several grandchildren, 2 of whom are minors. Because of the markets, etc, the spouse really needs these funds. Her two grown children are executors of her estate. I thought I had seen a PLR concerning the ability to make post death changes in beneficiaries, but cannot find anything on this. Spouse would not change the beneficiaries, but is there any way for her to roll this over into her own also much depreceiated from when all these documents were signed, or to access these funds. She is approaching 80 but very active. Death was March of this year 2009. Would appreciate any and all input.. Thanks.
Permalink Submitted by Jose Morales on Tue, 2009-11-17 17:52
You cannot change the beneficiaries after death. The children could disclaim their portion of the IRA that they inherited, if done within the appropriate time frame. Some plan documents specify that in the event there are no remaining beneficiaries the default beneficiary is the spouse, which would make things easy for the spouse in this case. If that is not in the plan document language then the default beneficiary would be the estate of the deceased. The spouse could then claim the funds via the estate of the deceased.
Permalink Submitted by Bruce Steiner on Wed, 2009-11-18 02:43
Depending upon how the decedent left his other assets, and depending upon state law, the wife may be able to claim an elective share, or may have community property rights. She might then be able to do a rollover. For more on that, see my article on this subject in the October 1997 issue of Estate Planning: http://www.kkwc.com/docs/AR20050125164755.pdf.
Bruce Steiner, attorney
NYC
also admitted in NJ and FL