[WSBAPT] IRA question

[Eric Nelsen]

Please someone correct me if I'm wrong, but my current understanding is that anything paid to "the Estate" can't be rolled over in any fashion that defers tax. So if they are giving the spouse the option to take half directly, that half would be eligible to hold in an inherited IRA, but not the half going to the Estate.

Some years ago-five? ten?-there was a flurry of argument that there was a way to transfer IRAs that were payable to "the Estate," a way that some but not all IRA custodians would agree to do, that would allow receiving an interest as an inherited IRA and continue to defer tax. I don't know if it truly worked even back then, and I'm even less sure since the IRA inheritance rules changed in the last few years and might have had an impact on that old possible method.

Sincerely,

Eric

Eric C. Nelsen
Sayre Law Offices, PLLC
1417 31st Ave South
Seattle WA 98144-3909
206-625-0092
eric at sayrelawoffices.com<mailto:eric at sayrelawoffices.com>

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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Shannon Jones
Sent: Wednesday, January 19, 2022 10:18 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] IRA question

Listmates, A client's spouse has died leaving a small ($20k) IRA which has no beneficiary listed. The account administrator has indicated they will pay 100% of the IRA to the "estate"  or that my client can claim ½ directly as community property and the other ½ will pay out to the estate. The surviving spouse is the only heir under the Will, so will receive the entire IRA under either scenario but wants to transfer this to an inherited IRA and further defer tax if possible. Does that mean taking ½ as surviving spouse under a community property claim rather than letting the entire IRA pay out to estate?

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Shannon R. Jones | Attorney
Campbell Barnett PLLC
P: 253.848.3513| F: 253.845.4941
317 South Meridian
Puyallup, WA 98371
shannonj at campbellbarnettlaw.com<mailto:shannonj at campbellbarnettlaw.com>
campbellbarnettlaw.com<https://campbellbarnettlaw.com/>


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