Inherited Roth IRA
Deceased Roth IRA owner has 5 beneficiaries. Some of the assets are impossible to split among 5 beneficiaries. Custodian is saying the account cannot be liquidated to pay out the beneficiaries. The assetw need to be transferred to the 5 beneficiaries. How can we get some of the account sold?
Permalink Submitted by Alan - IRA critic on Wed, 2014-09-17 17:15
All 5 beneficiaries need to submit the paperwork required by the custodian to re title the IRA in inherited form. Just one should have to provide the death certificate. Collectively, they could then provide the custodian with any data required by the custodian to assist the custodian in establishing the valuation of all holdings. Problem holding could then be sold in the Roth if the holdings could not be split into equal fractional shares for each beneficiary. After this has been done, the separate inherited Roth IRAs can be created for each beneficiary. The custodian may also require a signed and notarized agreement of acceptance if the beneficiaries agree to splitting assets unequally, ie equally by total valuation but unequal share amounts. This problem could be unique to the particular holdings in the Roth (eg real estate, limited partnerships, or other assets that are not frequently valued), and as such the beneficiaries should ask the custodian to provide options that are acceptable to enable separate accounts to be created by the deadline so that they can each use their own life expectancies for RMDs. Chances are that some cash needs to be raised in the Roth to facilitate an equal split.