No Designated Beneficiary on Bank IRA CD’s?
I have a client who’s mother has died – Mom has IRA at the “Local” bank – with no designated beneficiaries. Bank has “The Estate” on record as beneficiary. Can my client turn this into an Inherited IRA? What are her options
Permalink Submitted by Alan Spross on Wed, 2009-11-18 01:17
The IRA will have to go through probate procedures applicable for the state. Actual beneficiary of the IRA will be determined by will or intestate provisions.
If her mother passed prior to her required beginning date, the 5 year rule will apply. If she passed after the RBD, the client can take distributions over the remaining non recalculated life expectancy of her mother, assuming she is the estate beneficiary. There is no way the client can use her own life expectancy. The estate can be closed and the IRA then assigned to the estate beneficiary.