The decedent could conceivably be over 70.5, but still have passed prior to her RBD. But assuming that she passed after the RBD, the estate will be allowed to take RMDs over the remaining non recalculated life expectancy of the decedent. When the estate terminates and the IRA assigned to the beneficiaries of the estate, each will have the same RMD factor based on the age of the decedent at death.

As the IRA is distributed to each beneficiary, they each will typically pay taxes on the distribution each year based on their own tax bracket. While the estate could pay the taxes, the rates on an estate are compressed and much higher than individuals would typically incur. If the decedent had a tax basis in her IRA as shown on Form 8606, that basis would also pass through the estate to each beneficiary on a pro rated basis.

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