Permalink Submitted by Alan - IRA critic on Mon, 2018-08-13 15:59
A disclaimant cannot re direct the disclaimed amount to a particular person. It goes to where the beneficiary clause of the IRA specifies. Typically, in your example the disclaimed half would go to mother’s estate and pass under her will or under intestate provisions of the estate. If mother’s will named both children, the disclaiming person would also have to file a disclaimer with the executor of the will so they would not re inherit half of that half through the estate. If they don’t, it is not a qualified disclaimer. Therefore, the entire situation needs to be carefully examined before executing a disclaimer, starting with the IRA beneficiary clause. Note that if the amount is small enough, it may be easier NOT to disclaim, but take distributions and gift the tax adjusted amount to the brother annually under her gift tax exclusion amount of 15k annually.
Permalink Submitted by Alan - IRA critic on Mon, 2018-08-13 15:59
A disclaimant cannot re direct the disclaimed amount to a particular person. It goes to where the beneficiary clause of the IRA specifies. Typically, in your example the disclaimed half would go to mother’s estate and pass under her will or under intestate provisions of the estate. If mother’s will named both children, the disclaiming person would also have to file a disclaimer with the executor of the will so they would not re inherit half of that half through the estate. If they don’t, it is not a qualified disclaimer. Therefore, the entire situation needs to be carefully examined before executing a disclaimer, starting with the IRA beneficiary clause. Note that if the amount is small enough, it may be easier NOT to disclaim, but take distributions and gift the tax adjusted amount to the brother annually under her gift tax exclusion amount of 15k annually.
Permalink Submitted by Bruce Steiner on Sun, 2018-08-19 00:51
Check to see if there are contingent beneficiaries, or default beneficiaries under the IRA agreement.