tsmith69
Jul 4 2000, 05:04 PM
You are 73 and you die. You are single and have three sons aged 41-46. Your IRA has $2,300,000. You have to pay estate tax but can the balance be tranferred to the heirs and they can pay it as they take some kind of minimum distribution thru their lives?
David Baker
Jul 4 2000, 06:50 PM
Were the sons named as the beneficiaries of the IRA?
Was that designation in place on April 1 of the year immediately following the year during which the IRA owner became 70-1/2 (six months after his 70th birthday)?
tsmith69
Jul 5 2000, 01:35 AM
both answers are yes.
BPickerCPA
Jul 6 2000, 12:36 AM
As long as the beneficiaries are named as of the required beginning date, then IRA distributions can continue over a period that will approximate the actuarial life expectancy of the oldest beneficiary. You should look into life insurance to make sure that the IRA does not have to be liquidated to pay the estate tax.
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Barry Picker, CPA/PFS, CFP
New York, NY
www.BPickerCPA.com
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