re-inheriting a previously disclaimed IRA

Submitted by julee milham on Mon, 2020-11-30 01:07

Hello all,

When my father passed away, my mom disclaimed his Keogh to me (pre-TCJA, so I take the RMDs now over my lifetime). Philosophically, disclaiming treats the original beneficiary (here, my mom) as having pre-deceased the party who passed away (here, my dad) in order to let the next person inherit it (here, me). Am I allowed to now make my mom the beneficiary of this account (now an IRA) should I pass away before her despite her previously having disclaimed it to me? Or is she trapped in “pre-deceased” status?

thanks much.



Submitted by Alan - IRA critic on Mon, 2020-11-30 17:20

  • This is likely a “facts and circumstances” issue, also possibly affected by state law. The following article on p 12 and 13 indicates that there can be no expectation at the time of Mom’s disclaimer that you will name her as your beneficiary or the disclaimer wlll be disqualified. In addition, any indication that you make that she will be taken care of (by you naming her as your beneficiary down the road) would disqualify the disclaimer. 
  • Microsoft Word – issue01i.doc (naepcjournal.org)

Submitted by julee milham on Wed, 2020-12-02 05:18

This article is fantastic, Alan, esp the Monroe case (which fundamentally eliminates an “expectation” standard in favor of a mutually bargained-for “real” consideration standard, although I recognize that may have changed since or could in the future).  The disclaimer was for proper purpose (to avoid big tax consequences to my mom) but this definitely provides a roadmap to avoiding implications by what we do next.  Thank you so much!!

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