IRA BENEFICIARY
I have a client who was in RMD hasnt taken the distribution. He died Oct 25 his wife who is beneficiary died Oct 31. Did not list contingent, they have two adult children. How and who does the RMD go to, and since there was not a contingent does it default to the estate of the wife. Do the kids get the option of distributions over the wife’s life expectancy.
Permalink Submitted by mk foss on Wed, 2010-11-03 16:34
You need to see what the custodian’s agreement provides but in many cases the estate of the beneficiary will be used in this instance. The 2010 RMD for the father should be paid to the mother’s estate. With an estate beneficiary, the IRA may need to be probated. Contact a local attorney to see what the requirements are. In California, a probate would be required if an IRA worth more than $100,000 was the sole asset not protected from probate by a trust, title or beneficiary.
When the estate is closed, the IRA can be assigned to the beneficiary’s who would use the balance of the mother’s life exepctancy.