[WSBAPT] IRA and Community Property Agreement

[Margaret Delp]

Esteemed Colleagues:

Facts:

Prior to death, Decedent executed standard 3-prong Community Property
Agreement (CPA) with Surviving Spouse.  Will has been filed, but no
probate has been commenced.  Decedent died 10 months ago at the age of 85.
Estate falls well below $2 million.  Decedent had an IRA in which he
designated three sons as beneficiaries.  Sons are willing to disclaim
rights to IRA, as they believe the funds should go to their mother and to
lower tax consequences.  IRS rules appear to allow disclaimer if by Sept.
30 in the year following year of Date of Death.

 

My questions:  (1) does CPA trump IRA beneficiary designations, such that
disclaimer by the sons is not required? (2) If CPA does not trump IRA
beneficiary designations, can IRA beneficiaries still disclaim 10 months
after death, where RCW 11.86.021 appears to require disclaimer within 9
months of death or does that only apply to where a probate has been filed?
(3) Even if CPA trumps, is there any harm in having beneficiaries fill out
the bank’s disclaimer form, as that seems to be the procedure the
financial institution wants to follow.   

Thank you!

Margaret

--

Law Office of Margaret Delp

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P.O. Box 292

Langley, WA 98260

(360) 579-4530 (telephone)

(360) 512-3114 (facsimile)

 

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