I have what I think is a basic question.

T-IRA account owner, 75, dies in 2012.
Account owner takes RMD prior to death
Sister, 65, is sole beneficiary.

Sister takes her first RMD no later than 12/31/2013 commencing the “stretch”
RMD calculation is based on sister’s life expectance (i.e. age 66; age in the year following death)? Correct?

Thank you!