[WSBAPT] Part of the Gross Taxable Estate?

[Philip N. Jones]

I vote with Claudia.  Section 2039 of the Internal Revenue Code requires that result.
An IRA is also IRD (Income in Respect of a Decedent), which means that the recipient must also pay income tax on the proceeds of the IRA.  So an IRA is double-taxed, but the estate tax is deductible for income tax purposes.  Some exceptions apply to the above.
Phil Jones

Philip N. Jones
Duffy Kekel LLP
Portland, OR
pjones at duffykekel.com
(503) 853-1482 cell

On Oct 4, 2022, at 1:30 AM, Claudia A Gowan <claudia at cagowanlaw.com> wrote:


Brent, you are correct that simply distributing the IRA outside of probate would not remove it from the gross estate for purposes of the Washington State estate tax. The value of the IRA, as of the date of death of the decedent (assuming you are not using the alternate valuation date), needs to be included in the calculation of the gross estate when determining whether you have a filing obligation and/or an estate tax obligation.

Best, Claudia


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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> on behalf of Brent Williams-Ruth <brent at williams-ruthlaw.com>
Sent: Monday, October 3, 2022 5:19:29 PM
To: wsbapt at lists.wsbarppt.com <wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Part of the Gross Taxable Estate?

Greetings List -

Have a probate where Decedent set up beneficiary for his brokerage and his traditional IRA. The brokerage house disclosed the brokerage distribution but did not disclose the IRA. In a conversation with Executor believe each residual beneficiary received the same amount. If this is true - the estate would surpass the Washington estate tax threshold - if a traditional IRA transferred through beneficiary is counted as part of the GTE.

Simply by distributing outside of probate does not remove it from the gross taxable estate, correct?


Brent Williams-Ruth
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

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