Estate as IRA Beneficiary – Charitable Deduction
Post-2020 death. If the Participant’s “Estate” is named as the 100% primary beneficiary of a traditional IRA, but the entire Estate is passing to charitable beneficiaries under the terms of the Participant’s Will, can income taxes on the IRA distributions still be avoided? Thanks!
Permalink Submitted by Alan - IRA critic on Fri, 2023-07-28 23:28
Yes. The estate can take the charitable deduction under Sec 642(c) providing that the will contains provisions to allow the contributions and the donee is an approved charity. There are no AGI related income limits, and there if flexibiilty for the estate to claim the deduction in the preceding year. Such contributions made be made from estate income, but the IRA distribution is entirely income.