[WSBAPT] Fwd: Beneficiary of IRA responsible for expenses/estate tax

[Glenn Price]

No. 2 response.



Sent from my T-Mobile 4G LTE Device


-------- Original message --------
From: "John J. Sullivan" <sullaw at comcast.net>
Date: 4/14/17 5:04 PM (GMT-08:00)
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Beneficiary of IRA responsible for expenses/estate tax

I agree with the court. Under RCW 6.15.020 a decedent's IRA was exempt when he was alive, so it, unlike certain other nonprobate assets, cannot be forced to contribute to the expenses of or claims against the estate.

There is one exception I am aware of: federal law overrides the exemption for past income and employment taxes owed to the IRS. But even there, the Manual indicates the IRS only goes after IRA assets in especially egregious circumstances while the participant is alive.

I'm not sure this would apply to an IRA previously inherited by the decedent, which is not exempt at least in bankruptcy.

I suppose too the federal estate tax lien would attach if applicable.

John Sullivan

Sent from my iPhone

On Apr 14, 2017, at 4:26 PM, Jeff Davis <jeff at bellanddavispllc.com<mailto:jeff at bellanddavispllc.com>> wrote:

For what it is worth, attached is a probate court’s memorandum opinion denying my motion to stop the distribution of an inherited IRA going to decedent’s children because there were insufficient estate assets to pay creditors.

Jeff Davis

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Glenn Price
Sent: Friday, April 14, 2017 4:07 PM
To: WSBA Probate & Trust Listserv (wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>) <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: [WSBAPT] Beneficiary of IRA responsible for expenses/estate tax




Is a non-spouse beneficiary of an IRA liable for payment of expenses or estate tax of the decedent’s estate?


Glenn D. Price, J.D.
Price & Farrington, PLLC
Attorneys and Counselors at Law
Parkwood Office Center
2370 130th Avenue N.E., Suite 103
Bellevue, Washington 98005
Phone: 425.451.3583  Fax: 425.522.4818
Email: glenn at pricefarrington.com<mailto:glenn at pricefarrington.com>
Home page:   www.pricefarrington.com<http://www.pricefarrington.com/>
Estate, Tax, Retirement and Asset Protection Planning
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<0029. Memorandum Opinion & Order.12.14.15.pdf>
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