No Beneficiary named on IRA accts. Daughter was named in the will as sole heir.
My clients Father recently passed away and did not name a beneficiary on each IRA account. In his will he named his only child, daughter as the executrix and sole heir to his estate. Is there anyway the IRAs can be rolled over into a Beneficiary IRA account? I don’t almost a million dollars to be added to her income. If anyone has an answer I would appreciate the input. I understand the IRS allowed a rollover for a spouse but this is different. Thanks again.
Kathleen
Permalink Submitted by Alan - IRA critic on Wed, 2012-12-19 21:59
If there is no surviving spouse, the IRA agreements most likely make his estate the beneficiary, although the agreement provisions should be verified. An inherited IRA will be set up for the estate, and as executrix she can terminate the estate and have that IRA assigned to herself as beneficiary. If her father passed prior to his required beginning date, the 5 year rule will apply and if after she can use his remaining life expectancy based on his age this year. She cannot use her own life expectancy because she was not named on the IRA as a designated beneficiary. His 2012 remaining RMD also needs to be distributed to the estate before year end if possible.
Permalink Submitted by Bruce Steiner on Thu, 2012-12-20 00:24
Check the IRA agreement. Where there is no spouse, in some the default beneficiary is the children, and in some the default beneficiary is the estate.