Replacing estate as IRA beneficiary

Submitted by James Magno on Tue, 2015-07-14 21:18

In PLR 2011280336, IRS ruled re inherited IRA with no named beneficiaries. The estate became the beneficiary but IRS ruled that the IRA could be retitled in the name of (nonspousal) beneficiaries.
Similar PLRs include 200950058,201211034,201212021,201210045,201210047 etc.
My client has about $160k in the estate beneficiary IRA. I would like to encourage the financial institution to allow the IRA to be re-titled to an inherited IRA FBO residual beneficiary.
Is there any substamtial authority which would provide ammunition for this treatment? The goal would be to close out the estate this year if the IRA could be retitled otherwise the estate must stay open until 2018.
Is there something more than PLRs ?
Thanks in advance
Jim



Submitted by Bruce Steiner on Tue, 2015-07-14 21:29

  • I’m not aware of anything other than the private letter rulings.  If you can’t get the financial institution to do this, even with a legal opinion, then your client might want to move the inherited IRA to a different financial institution.

 

  • Bruce Steiner, attorney, NYC, also admitted in NJ and FL

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