IRA BDA Inquiry
Hello,
I have a spouse (74 years old) who has passed and her 2 daughters are the only primary beneficiaries and they are going to disclaim the assets. The assets will default to the deceased client’s estate and be put into an IRA BDA for their estate. If the surviving husband is the executor of the estate, would their be any issue for them to move the assets into an IRA BDA for the surviving husband since he is the beneficiary of the estate? Could they treat the assets as their own or would it need to stay in a IRA BDA? Any feedback would be greatly appreciated. Thank you.
Permalink Submitted by Alan - IRA critic on Tue, 2021-04-13 15:35
Assuming the husband is the sole beneficiary of spouse’s will, there have been several PLRs allowing a spousal rollover where husband would become the owner of the IRA. However, since a disclaimer was not part of these prior PLRs, the IRA custodian might be less inclined to cooperate and more likely to request a specific PLR which could cost around 20k. On the other hand, if the executor assigns the inherited IRA out of the estate to himself as beneficiary, his beneficiary RMDs would be based on the remaining life expectancy of decedent and RMDs would be much higher than if the spousal rollover can be done.
Permalink Submitted by Bruce Steiner on Thu, 2021-04-15 23:03
See my articles on thos in the October 1997 issue of Estate Planning, https://www.kkwc.com/wp-content/uploads/2015/04/AR20050125164755.pdf, and the June 2015 issue of Trusts & Estates, https://www.kkwc.com/wp-content/uploads/2015/08/IRA-Rollovers-Making-this-option-possible.pdf.