disclaimed IRA
So i understand the process whereby surviving spouse dis-claims one of her deceased spouse’s interest-bearing accounts and places into a Family Trust. That process has the survivor now assuming (portability) the federal lifetime allowance of $12.92 minus the disclaimed piece. All of this documented on IRS Form 706. So my question: is the process around a disclaimed IRA the same, ie., does the FMV of the disclaimed IRA reduce the DSUE that the survivor can add to hers? also reported on IRS Form 706 ?
Permalink Submitted by David Mertz on Sun, 2022-11-20 01:43
I don’t see why it would be any different. The instructions for Schedule M (Form 706) say not to include on Schedule M, among other things, “6. Any property interest disclaimed by the surviving spouse.” This means that the disclaimed property does not get included in the marital deduction and therefore is not excluded from the deceased spouse’s taxable estate.