Partial Disclaimer of funds Spouse beneficiary

Submitted by Robert Karras on Tue, 2020-11-17 18:03

Decedent named his Spouse as Beneficiary, is she able to disclaim a portion and have that Rolled over to her Adult Children.



Submitted by Alan - IRA critic on Tue, 2020-11-17 20:50

  • She can file a partial disclaimer. Were these children all named as contingent beneficiaries on decedent’s IRA? Surviving spouse cannot direct the proceeds to anyone she pleases.
  • If so, children will be subject to the 10 year rule. But the surviving spouse would not be, and the IRA could be stretched longer depending on the age of the surviving spouse. 

Submitted by Robert Karras on Wed, 2020-11-18 13:06

Alan,Thank you for the response. neither of teh children are not named as contingent beneficiary so therefore I understand that they cannot be included now. The Spouse was just trying to make things right in her mind. I appreciate your help in this matter.   Bob

Submitted by Alan - IRA critic on Wed, 2020-11-18 13:52

She might still disclaim after determining the beneficiaries under his will, or even if he had no will it could be determined how the state intestate provisions would direct the disclaimed funds. But this adds more complications and expenses even if it would work. Depending on the circumstances, she could accept the IRA and make tax adjusted annual gifts to the children, perhaps up to the 15k annual gift exclusion.

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