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--></style></head><body lang="EN-US" link="blue" vlink="purple"><div class="WordSection1"><p class="MsoNormal"><span style="color:#1f497d">I just had one of these. I decided NO withholding. Any tax withheld would be reported under the tax ID# of the estate. Since you plan to immediately distribute, then you have the problem of how to distribute the withholding credit and get the proper information to the IRS for each beneficiary. In my case, like yours, the amounts were relatively small, so I chose no withholding and will advise the beneficiaries of the taxable portion of the income on their K-1 forms.</span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Sincerely,</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#3333ff"><br></span></b><b><span style="font-size:13.5pt;font-family:"Lucida Handwriting";color:#3333ff">Chris J. Moore</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Christopher J. Moore, JD, CPA, AEP<sup>®</sup>, EPLS*</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Creason, Moore, Dokken & Geidl, PLLC</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Lawyers</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">1219 Idaho Street, POB 835</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Lewiston, Idaho 83501-0835</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Phone: 208-743-1516; Fax: 208-746-2231</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">Website: </span><span style="font-size:12.0pt;font-family:"Times New Roman",serif;color:#1f497d"><a href="http://www.cmd-law.com/" target="_blank"><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#1155cc">www.cmd-law.com</span></a></span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">*Certified as an Estate Planning Law Specialist by the Estate Law Specialist Board, Inc., the only estate planning certification entity approved by both the American Bar Association and the Idaho State Bar Association.</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#500050">_______________________________________________</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#500050"><br></span><b><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#17365d">-- Note -- </span></b><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#17365d">The information contained in this e-mail transmission is confidential and may also be a legally privileged communication. This information is intended for the exclusive and private use of the addressee(s). If you are not the intended recipient, you are hereby notified that any use, disclosure, dissemination, distribution (other than to the addressee(s)), copying or taking any action because of this information is strictly prohibited. If you have received this e-mail in error, please notify the sender immediately. Thank you.</span><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#17365d"><br></span><span style="font-size:10.0pt;font-family:"Verdana",sans-serif;color:#17365d">~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~</span><span style="color:#1f497d"></span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><p class="MsoNormal"><span style="color:#1f497d"> </span></p><div><div style="border:none;border-top:solid #e1e1e1 1.0pt;padding:3.0pt 0in 0in 0in"><p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [mailto:<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Thursday, February 26, 2015 4:16 PM<br><b>To:</b> WSBA Probate & Trust listserve (<a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a>)<br><b>Subject:</b> [WSBAPT] Mandatory withholding on tax deferred account paid to Estate</p></div></div><p class="MsoNormal"> </p><p class="MsoNormal">Decedent has a tax-deferred account of about $35,000 that has no named beneficiary and will be paid to Estate. I honestly can't remember the last time I had this problem, if I ever have. The Estate will distribute pretty quickly to the five heirs ($7,000 each), who of course will have to take the money as income and pay income taxes. </p><p class="MsoNormal"> </p><p class="MsoNormal">Should we opt to allow the 20% withholding from the payment to the Estate, or tell the custodian to send the Estate the entire amount, no withholding, and let the beneficiaries deal with it? Are there significant pros and cons to both options?</p><p class="MsoNormal"> </p><p class="MsoNormal"><span style="font-size:12.0pt">Sincerely,</span></p><p class="MsoNormal"><span style="font-size:12.0pt"> </span></p><p class="MsoNormal"><span style="font-size:12.0pt">Eric</span></p><p class="MsoNormal"><span style="font-size:12.0pt"> </span></p><p class="MsoNormal"><span style="font-size:12.0pt">Eric C. Nelsen</span></p><p class="MsoNormal"><span style="font-size:12.0pt">SAYRE LAW OFFICES, PLLC</span></p><p class="MsoNormal"><span style="font-size:12.0pt">1320 University St</span></p><p class="MsoNormal"><span style="font-size:12.0pt">Seattle WA 98101-2837</span></p><p class="MsoNormal"><span style="font-size:12.0pt">phone 206-625-0092</span></p><p class="MsoNormal"><span style="font-size:12.0pt">fax 206-625-9040</span></p><p class="MsoNormal"> </p></div></body></html>