Hi, I am a CPA and Tax Attorney and I am delighted with the Ed Slott IRA Discussion Forum. Thank you.

In this case,the IRA Owner/ Decedent named her daughter as the named designated beneficiary in the IRA document.

At first the IRA Custodian Bank/ Brokerage Firm who is the custodian of the original IRA was demanding (ridiculous) things like setting a Court Date to transfer the IRA into an Inherited IRA for the named designated beneficiary daughter. Said Custodian was also demanding that the Executor sign off on the setting up of the Inherited IRA even though an IRA with a named designated beneficiary is a NON PROBATE asset and passes completely outside the Executor’s Authority.

I have successfully educated said IRA Custodian/Advisors that not only is a Court Date NOT needed, but the Executor’s signature is likewise NOT needed.

The Custodian/ Advisor is about to set up the Inherited IRA on the authority of the named designated IRA beneficiary’s signature, except that he is demanding an L-8 Form (a NJ Form that states no inheritance tax or estate tax is due) and an Affidavit of Domicile, (which establishes the domicile of the dependent)
The problem is that both forms require the Executor’s signature, and require attaching the Will, and the Executor is not involved at all with the IRA with a named designated beneficiary which does not pass under the Will. The Will and the Executor are not involved at all with this IRA that is non probate and passes to a named designated beneficiary.

Please tell me if I am correct in telling the IRA Custodian of the decedent’s IRA, that said forms signed by the Exector and referenced above,( L-8 and Affidavit of Domicile), are not necessary nor appropriate in this case because they require a copy of the Will and the Executor’s signature and this IRA passes outside the Will and Executor’s Authority. Said forms are only appropriate when the IRA is a PROBATE asset, passing under the Executor’s control and Will, because such an IRA would be payable to the Estate only, and NOT to a named designated beneficiary.

Thank you very much.