Inherited Annuities
My sister passed away leaving several annuities. Two of the annuities I was named beneficiary and two no beneficiary was named so I know those go to her estate. I am concerned about the tax rate (37%) that the estate has to pay. Is it possible to distribute the proceeds to myself (I am executor) and pay my tax rate of (24%). Is that possible? Thank you.
Permalink Submitted by Alan - IRA critic on Mon, 2020-07-13 17:29
Yes, but you will have to run the distribution through the estate, reporting them on Form 1041, then passing through the estate to you as beneficiary on Form K 1. Taxes are then paid at your personal rate.