IRA Represents 60% of Estate
When an IRA holder wants minor grandchildren to receive inherited IRAs (say $1,000,000 x 5) but Non IRA assets are not enough to cover projected Estate Taxes, how can this be accomplished with out IRS being a huge beneficiary (up front)
Any thoughts will be appreciated
Permalink Submitted by Bruce Steiner on Mon, 2021-02-15 01:26
I’m not aware of any authority on this, but perhaps it might qualify for a discretionary extension of time to pay the estate tax under Section 6161.
While you can’t pledge an IRA as security for a loan, perhaps the beneficiaries might be able to borrow on an unsecured basis, or secured by other assets, and deduct the interest on the estate tax return.
Bruce Steiner
Permalink Submitted by gautam SHAH on Wed, 2021-02-17 01:15
if you have life time exemption use to minimise estate tax then divide in indivitual account using see trhough trust for minor beneficiaries becomes strech