An IRA holder dies in 2002 after taking RMDs from his IRA in previous years. Is the IRA holder required to take a RMD during the year that they die based upon the 12/31/02 balance?

You did not say that he took an RMD for 2002, so my response is based on the assumption that he did not.

The RMD for 2002 should have been distributed by 12/31/2002. This is calculated using the 12/31/01 fair market value. If he dies before distributing this amount, then his beneficiary is required to have the amount distributed by 12/31/02… even though this distribution represents the deceased’s RMD for 2002, it is reported under the beneficiary’s tax ID number. If the amount was not distributed in 2002, then the beneficiary must distribute the amount as soon as possible. The IRS assesses a 50 percent excess accumulation penalty on RMD amounts not withdrawn by the deadline. However, you may request a waiver ( from the IRS), by writing a letter of explanation-
For 2003, the beneficiary may be required to continue taking RMD amounts based on his/her life expectancy. The options vary somewhat, depending on whether the beneficiary is a spouse of the deceased.

Is the beneficiary a spouse of the deceased? An individual or non-person(such as a charity etc.)?