Estate (successor beneficiary)
T-IRA owner died in in 2010 naming his brother sole primary beneficiary
Brother died in 2019 naming his estate as (successor) beneficiary
Will stated to have his inherited IRA split amongst 5 nieces & nephews upon
Questions
Pre-Secure rules would apply here (beneficiary died in 2019) – therefore the successor beneficiary “steps into the shoes” of the original beneficiary (brother) continuing the stretch (using what’s left of the original beneficiaries Life Expectancy – Does that rule apply in instances where the estate inherits as successor beneficiary? Or does the estate follow a different payout schedule (such as the 5 year rule?)
Thank you
Permalink Submitted by Alan - IRA critic on Mon, 2022-08-29 13:48
The former. However, the executor will probably not want to keep the estate open for brother’s remaining LE. Executor could assign the inherited IRA out of the estate to the 5 estate beneficiaries as individual inherited IRAs, but the custodian might resist opening 5 new inherited IRAs. If the remaining amounts are small enough a lump sum distribution might be considered.