Inherited IRA Husband to Wife to Estate
Husband died 10/06/2020 leaving IRA with wife as beneficiary.
Wife died 12/31/2020 without ever getting IRA into her name.
How do we get the IRA assets into inherited IRAs for the two children who are the beneficiaries of the wife’s estate?
Permalink Submitted by Alan - IRA critic on Tue, 2022-08-30 18:45
Executor of wife’s estate could assign the inherited IRA out of the estate to the estate beneficiaries, who would then have control of their own separate inherited IRAs. But that would not change the annual beneficiary RMDs which should have started in 2021. Those RMDs would be based on wife’s remaining single LE which continue as wife was an EDB per the Secure Act. The executor would not want to keep the estate open much longer in most cases, and assignment would allow it to close. However, some IRA custodians do not cooperate with an assignment request even though the IRS has no issue with the process.