Hi,

I am a CPA and Tax Attorney and I am delighted with the Ed Slott IRA Forum. Thank you.

My question is the following:

When the IRA document contains NO designated named Beneficiary and is payable to the Estate, then it is a probate asset, passing under the Will, and the Executor controls it as property of the Estate, and the Executor signs off on the LOA, Letter of Authorization or similar document, transferring the IRA to the beneficiaries named under the terms of the Will.

However, when the IRA document Does contain a designated named beneficiary, then the IRA is a non probate asset, and does not pass under the Will, but by operation of Law to the named designated beneficiary in the IRA. As a non probate asset, the IRA does NOT come under the control of the Executor. Then the Executor does not sign the LOA or similar document distributing the decedent’s IRA to the named designated beneficiary and creating an Inherited IRA. Since neither the Executor nor, of course, the decedent, signs the authorizing document creating the distribution to an Inherited IRA, then I assume that the owner of those assets in the IRA, the named designated beneficiary, signs the authorization document to transfer the decedent’s IRA to an Inherited IRA. Please tell me if I am correct. Thank you.

If I am correct, then can you please refer me to a publication or reference describing the above situation, so I can show it to an IRA custodian, a banker/broker advisor who is completely confused about the procedures with a probate asset IRA, and a non probate asset IRA. Thank you very much.