IRA distributions - pre- or post-death?

[Guest Trirod]

A client died over the weekend. On the Friday before, his son, who had a valid power of attorney, made a request to withdraw a substantial sum from his father's IRA. The request did not reach the IRA custodian until after close of business on Friday. It was effected on Monday, after the death of the client.

My question is whether the income is taxed to the decedent or to the estate? If the income is treated as belonging to the decedent then his estate can be reduced by the amount of the income tax liability associated with that distribution. My feeling is that because the transfer did not actually take place until the Monday, that is when the income is recognized and therefore it belongs to the Estate -but does anybody have any thoughts?

Thanks

[Gary Lesser]

In most likelyhood the power lapsed, but this is a matter of state law.