Inter Vivos IRA Gift & Gift Marital Deduction
Does a intervivos gift of an IRA (community property) to a spouse qualify for gift marital deduction? Does anyone have a citation one way or the other?
Does a intervivos gift of an IRA (community property) to a spouse qualify for gift marital deduction? Does anyone have a citation one way or the other?
Permalink Submitted by Alan Spross on Tue, 2010-02-23 18:39
An IRA cannot be gifted while the owner is living. An inherent community property interest of a spouse in the other spouse’s IRA is not considered a gift either.
The IRA owner spouse would have to take an IRA distribution and then gift those assets to the other spouse, and the unlimited marital gifts would apply to that.