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<div>Thanks Chris and Jackie--I was leaning toward no withholding but then suddenly wondered if I was forgetting something. No withholding it is. Thanks!</div>
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<div>Eric Nelsen</div>
<div>Sayre Law Offices PLLC</div>
<div>206-625-0092</div>
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<div id="htc_header">----- Reply message -----<br>
From: "Eric Nelsen" <Eric@sayrelawoffices.com><br>
To: "WSBA Probate & Trust listserve (wsbapt@lists.wsbarppt.com)" <wsbapt@lists.wsbarppt.com><br>
Subject: [WSBAPT] Mandatory withholding on tax deferred account paid to Estate<br>
Date: Thu, Feb 26, 2015 4:28 PM</div>
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<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.
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<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>
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<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>
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