[WSBAPT] IRA Beneficiary Issue

[John J. Sullivan, Esq.]

Tom:

 

Just one question: Is the beneficiary demanding a cash out, or an in kind distribution of securities? The latter is the only circumstance I can think of where it would be legitimate under the securities regulations for the custodian to require the beneficiary to open an account with the custodian to receive  the securities, and that would come with a certain amount of disclosure. 

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Roger Hawkes
Sent: Thursday, June 15, 2023 11:07 AM
To: Thomas Fiscus <tjf at thomasjfiscus.net>; WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] IRA Beneficiary Issue

 

Just say ‘no’.

 

From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com> > On Behalf Of Thomas Fiscus
Sent: Thursday, June 15, 2023 10:52 AM
To: wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> 
Subject: [WSBAPT] IRA Beneficiary Issue

 

Listmates: One of the designated beneficiaries of my deceased client's IRAs is being told by the holder of the IRA (a multistate company with an office in Washington) that she must disclose an extraordinary amount of information about her personal finances in order for the company to set up an account for her into which they can then make IRA distributions to her.  I'm aware of the SECURE Act requirements regarding the distribution periods for inherited IRAs, but in this case the beneficiary wants a full distribution (not into an IRA) and understands that she will bear whatever tax consequences there are - so there is no need for her to create an "account" with the holding financial organization.  The amount of detail being demanded by the organization is pretty invasive.  I have as yet not engaged with the financial institution and am looking for any statutes or IRS regulations that permit (or require) such demands by them.  She is a US citizen with a social security number and a bank account in the US into which the funds would be deposited.  The demands are such that she is considering disclaiming the gift, rather than have to give all this data to a company to which she does not want a client relationship.  Any thoughts about dealing with the financial institution are appreciated.

 

Thanks

Tom Fiscus

 

Law Office of Thomas J. Fiscus
Box 1167

Eastsound, WA 98245

Ph 360-298-0534
WSBA # 44741 

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