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Old 01-18-2015, 04:53 AM
 
71,870 posts, read 71,942,576 times
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ED SLOTT POINTS OUT :

if you have others that you want your IRA money to go to after you and your spouse are gone make sure you have sub beneficiary's listed.

a beneficiary other than spouse gets to take your rmd's over an irs chart that plans payments over their lifetime. spreading out taxes for many years.

but if dad lists mom and passes on and mom has not added the children then according to many states and or your ira custodial agreement the funds get distributed to the estate directly.

it becomeS a taxable distribution to the estate with all taxes due at once.

https://www.irahelp.com/slottreport/...count-now-what
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Old 01-18-2015, 06:31 AM
 
6,547 posts, read 3,107,016 times
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Quote:
Originally Posted by mathjak107 View Post
ED SLOTT POINTS OUT :

if you have others that you want your IRA money to go to after you and your spouse are gone make sure you have sub beneficiary's listed.

a beneficiary other than spouse gets to take your rmd's over an irs chart that plans payments over their lifetime. spreading out taxes for many years.

but if dad lists mom and passes on and mom has not added the children then according to many states and or your ira custodial agreement the funds get distributed to the estate directly.

it becomeS a taxable distribution to the estate with all taxes due at once.

https://www.irahelp.com/slottreport/...count-now-what

True and also make sure all your beneficiaries are up to date. Don't forget to add payable on death names to your checking accounts.

Even a small account can cost a large flat fee for an attorney to free it up through a streamlined probate process when the estate might otherwise not even need to go through probate. A friend of mine's parents were meticulous about beneficiaries, but somehow left two accounts out there without one. Accounts totaled 38,000 and it cost 1500 to probate them.

Especially, check old accounts and make sure you took ex spouses off them if you no longer want the money to go there.

Ditto, elderly parents you may have added at one point when you were all younger so it doesn't end up going to the state in the event they exhaust their funds and need a nursing home.
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