IRA disclaimer
Client tells his 6 nephews that they are the beneficiaries of his IRA but dies with only one nephew listed as beneficiary. Can this nephew disclaim part of the IRA to the other 5 nephews?
Client tells his 6 nephews that they are the beneficiaries of his IRA but dies with only one nephew listed as beneficiary. Can this nephew disclaim part of the IRA to the other 5 nephews?
Permalink Submitted by Alan - IRA critic on Thu, 2018-06-21 15:34
If the intent is to have the IRA inherited by client’s estate and client’s will names all 6 of the nephews as beneficiaries, the disclaimer will not be qualified because the disclaimant cannot inherit any part of the disclaimed property per Sec 2518. Therefore, the nephew would also have to file a disclaimer for the estate portion of the IRA that he would inherit. State law might come into play in certain states, and of course the IRA beneficiary clause must result in the estate being the default beneficiary in the first place. Therefore, this might be possible if all the variables fall into place.
Permalink Submitted by Bruce Steiner on Fri, 2018-06-22 03:22
Who are the contingent beneficiaries with respect to the nephew considering disclaiming?