[WSBAPT] Prior Year RMDs

[Susan Donahue]

Hello Carla,  I had a situation once when a decedent had an IRA naming his
wife as the beneficiary and his two adult children as secondary
beneficiaries.  He and his wife had divorced a couple of years earlier than
the man's death, and he never got around to changing the beneficiaries.  The
wife, my client, wanted to change the beneficiary designation to leave it to
her children.  I contacted the legal department of the firm that
held/managed the IRA and got instructions about what they would accept to
change the beneficiary.  They needed a court order.  I drafted one and the
lawyer at the IRA firm reviewed it so that it would be absolutely
acceptable.  The wife and the children signed declarations that I drafted
and I went to court and got the order.  The IRA firm accepted it and the
children were named beneficiaries and got the money.  It was tedious and
long, but it worked.

 

This was a separate matter from the probate which I did not handle.  I
didn't even consult the probate attorney as I recall.  It seemed to me that
it was up to the wife to decide whether she wanted to be the beneficiary or
not.

 

This little story might give you some ideas.

 

Susan

 

 

Susan Donahue

Law Office of Susan Donahue

125 West 2nd Avenue, Suite "B"

P.O. Box 81

Twisp, WA 98856

(509) 996-5944 (phone)

(509) 362-9692 (fax)

 <mailto:sdonahue at sdonahuelaw.com> sdonahue at sdonahuelaw.com

 <http://www.sdonahuelaw.com> www.sdonahuelaw.com

 

 

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com>
On Behalf Of Carla Wigen
Sent: Friday, April 24, 2020 1:28 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] Prior Year RMDs

 

Hello ListServe members: We have a situation that we have not faced before.
We have been appointed as a PR where the decedent had multiple IRAs and had
RMDs that he did not take from 2015 through 2019.  Now the IRA custodians
refuse to make distribution of those prior amounts to the Estate.  They are
only willing to make distributions to the named IRA beneficiaries.  We are
concerned about the decedent's liability for not having taken required
distributions as well.  Have any of you worked on such a situation or with a
CPA who is very experienced with such a situation.  Thank you for
recommendations.  Carla

 

.....................................................
Carla C. Wigen CPA, J.D. 
Managing Director of Fiduciary Strategy  206.464.5088 

 <https://lairdnortonwm.com/> 

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Seattle, WA 98104 
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