Spousal Rollover

My father (age 79) recently passed away and I’m trying to help my mother with her affairs. He had a traditional IRA and my mother (age 73) was named as the primary beneficiary. Since she was the spouse, I thought that she would be able to transfer his entire IRA to her own. However, when we went to see the financial adviser, she told us that my father’s RMD would have to be calculated for 2007 and that amount would be put into a separate new estate account and that my mother could put the remainder into her IRA account which is held at the same brokerage firm? Does anyone know if this is correct? My mother lives in Texas. Is it necessary to open up this separate account? I appreciate any help in this matter. Please e-mail me at [email protected].