Disclaiming IRA
Father makes brother the sole beneficiary of an inherited IRA. Father does not name a contingent beneficiary. Father dies and has a daughter who is age 13. Brother wants to disclaim the IRA so that the IRA can go directly to daughter. If brother disclaims, does IRA go to daughter?
Permalink Submitted by Alan Spross on Thu, 2008-08-28 19:08
The answer depends on a two step determination:
1) The IRA agreement needs to be reviewed to determine where the funds go if there are no named beneficiaries. Typical provisions would be either the estate, surviving spouse, or children.
2) If the IRA agreement makes the estate the default beneficiary, then the father’s will would determine where the estate must distribute the IRA proceeds. If no will, then state intestate provisions come into play.
Brother should not disclaim until these details are resolved.