IRA Distribution Through Estate
Deceased had IRA payable to estate, that then flowed into a trust. Beneficiary received distribution and K1 for amount. Executor is saying its taxable income to the beneficiary because its from an IRA. Wouldn’t the intermediate step of it going to the trust make it taxable there, and therefore not to the beneficiary? Thanks,
Permalink Submitted by Bruce Steiner on Fri, 2017-04-07 14:09
It depends. More facts are needed. The attorney handling the estate would be best able to advise as to the tax consequences. Presumably he/she advised the executors and trustees as to how best to deal with the IRA.