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</o:shapelayout></xml><![endif]--></head><body lang=EN-US link=blue vlink=purple><div class=WordSection1><p class=MsoNormal><span style='color:#1F497D'>Eric- I did one of those custodian transfers to an inherited account thru Fidelity and they were most knowledgeable and helpful (in contrast to the grantor custodian!). It got us a 5 year stretch out and allowed us to close the estate. Good luck!<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><i><span style='color:#1F497D'>Cyrus W. Field, Attorney at Law (admitted in Washington and Oregon)<o:p></o:p></span></i></p><p class=MsoNormal><i><span style='color:#1F497D'>phone: 360-472-1223 Mail: POB 367, Shaw Island, WA 98286 Office: 640 Mullis St. Friday Harbor, WA</span></i><span style='color:#1F497D'><o:p></o:p></span></p><p class=MsoNormal><span style='font-size:8.0pt;color:#1F497D'>******************************************************************<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:8.0pt;color:#1F497D'>The information contained in this e-mail message, including attachments, may be privileged, confidential and protected from disclosure. If you are not the intended recipient, any dissemination, distribution or copying is strictly prohibited. If you think you have received this e-mail in error, please e-mail the sender at cyfield@rockisland.com and destroy or delete the original and any copies. <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com] <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Thursday, April 02, 2015 5:04 PM<br><b>To:</b> WSBA Probate & Trust Listserv<br><b>Subject:</b> Re: [WSBAPT] Non pro rata allocation of taxable income to beneficiaries<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='color:#1F497D'>Marcus--Thanks, I have never heard of this--I'm definitely glad to hear it.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>In this case, though, the heirs are okay with getting the cash; we're just trying to minimize the tax hit by selectively allocating the income pass-through to low-income beneficiaries. Any thoughts on whether that's allowed?<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>Eric<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>Eric C. Nelsen<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>1320 University St<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>Seattle WA 98101-2837<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>phone 206-625-0092<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt;color:#1F497D'>fax 206-625-9040<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Marcus Fry<br><b>Sent:</b> Thursday, April 02, 2015 4:28 PM<br><b>To:</b> 'WSBA Probate & Trust Listserv'<br><b>Subject:</b> Re: [WSBAPT] Non pro rata allocation of taxable income to beneficiaries<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><a name="_GoBack"></a><span style='color:#1F497D'>Eric:<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I disagree about “no rollover options.” First, it’s technically not a rollover, as rollovers are only for spouses. However, many financial institutions permit the PR to instruct the establishment of inherited IRAs in each beneficiary’s name. Natalie Choate’s website list some good companies.</span> <span style='color:#1F497D'><a href="http://www.ataxplan.com/bulletinboard/ira_providers.cfm">http://www.ataxplan.com/bulletinboard/ira_providers.cfm</a> <o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><p class=MsoNormal><span style='color:#1F497D'>I suggest moving the IRA to another institution as suggested by Choate if the one you are at will not cooperate.<o:p></o:p></span></p><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><p class=MsoNormal style='text-align:justify'><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Marcus J. Fry<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Lyon, Weigand & Gustafson, P.S.</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <br></span><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Adoption Attorney*<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>P.O. Box 1689</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <br></span><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Yakima, Washington 98907</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <br></span><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Telephone: (509) 248-7220</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <br></span><span style='font-size:10.0pt;font-family:"Courier New";color:#1F497D'>Facsimile: (509) 575-1883</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'> <o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><b><u><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D'><o:p><span style='text-decoration:none'> </span></o:p></span></u></b></p><p class=MsoNormal style='text-align:justify'><b><u><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D'>NOTICES:<o:p></o:p></span></u></b></p><p class=MsoNormal style='text-align:justify'><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D'> *Adoption Attorney reflects election as a Fellow of the American Academy of Adoption Attorneys, an invitation based organization of 300+ attorneys nationwide, under its criteria of experience, ethics and peer recommendation. Washington's Supreme Court has not yet developed or recognized a credentialing process for specialties, and certification/fellowship is not required to practice law in this state.<o:p></o:p></span></p><p class=MsoNormal style='text-align:justify'><b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Confidentiality: </span></b><span style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#1F497D'>This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges. If you are not the intended recipient, you are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited. If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding function on your e-mail system) and then deleting the e-mail.</span><span style='font-size:12.0pt;font-family:"Times New Roman","serif";color:#1F497D'><o:p></o:p></span></p></div><p class=MsoNormal><span style='color:#1F497D'><o:p> </o:p></span></p><div><div style='border:none;border-top:solid #B5C4DF 1.0pt;padding:3.0pt 0in 0in 0in'><p class=MsoNormal><b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From:</span></b><span style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a> [<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">mailto:wsbapt-bounces@lists.wsbarppt.com</a>] <b>On Behalf Of </b>Eric Nelsen<br><b>Sent:</b> Thursday, April 02, 2015 3:57 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] Non pro rata allocation of taxable income to beneficiaries<o:p></o:p></span></p></div></div><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Estate has four equal beneficiaries. Decedent had an IRA that paid directly to Estate, so no rollover options.<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>One of the beneficiaries is in a very low tax bracket, and all four beneficiaries agree that they'd like all the tax liability for the IRA allocated to that one beneficiary. (There's enough other cash in the estate to allow complete distribution of the IRA to one and make compensatory distributions to the other three of untaxed inheritance dollars.)<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Is that allowed? So the Estate would do a tax return and issue K-1s, allocating all income liability to one out of the four beneficiaries, and none to the other three?<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal>Any idea where I would look for the governing rule? IRS Code or Regs I would guess, but not sure where...<o:p></o:p></p><p class=MsoNormal><o:p> </o:p></p><p class=MsoNormal><span style='font-size:12.0pt'>Sincerely,<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'><o:p> </o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>Eric C. Nelsen<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>SAYRE LAW OFFICES, PLLC<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>1320 University St<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>Seattle WA 98101-2837<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>phone 206-625-0092<o:p></o:p></span></p><p class=MsoNormal><span style='font-size:12.0pt'>fax 206-625-9040<o:p></o:p></span></p><p class=MsoNormal><o:p> </o:p></p></div></body></html>