Sharing Inheritance
A client has inherited an IRA from his father. He was listed as sole beneficiary to the assets within. He would like to share/split the inheritance with his siblings. Can this be done or must he take the distributions (paying taxes) and provide as a gift to the siblings?
Permalink Submitted by David Mertz on Mon, 2022-11-14 22:04
Unless the siblings are contingent beneficiaries of his father’s IRA who would inherit appropriately if a portion of the IRA could be disclaimed, any portion given to the siblings would be distributions paid to and taxable to the client and subsequent gifts by the client to the siblings.