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HI all,<o:p> </o:p></p>
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I have a question regarding non-pro-rata distributions of an estate.<span style="mso-spacerun:yes">
</span>Executor (surviving spouse) has nonintervention powers.<span style="mso-spacerun:yes">
</span>There’s a<span style="mso-spacerun:yes"> </span>house and a 401(k). <span style="mso-spacerun:yes">
</span>Everything is community property.<span style="mso-spacerun:yes"> </span>
Estate valued over $3M, and there is a disclaimer trust to be established for the surviving spouse to avoid estate taxes when she passes.<span style="mso-spacerun:yes">
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Executor-spouse is moving into assisted living and the home is being sold.<span style="mso-spacerun:yes">
</span>We want to distribute 100% of the house sale proceeds into the disclaimer trust, and none of the 401(k).<span style="mso-spacerun:yes">
</span>Is this permissible as non-pro-rata distribution from the estate?<span style="mso-spacerun:yes">
</span>Problem is that there’s no other nonqualified funds (non-retirement account) to fund the disclaimer trust, and we don’t want to have to pay income tax on a 401(k) distribution to the disclaimer trust (there’s no conduit language in the trust).<span style="mso-spacerun:yes">
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Anyone done this before?<span style="mso-spacerun:yes"> </span>I’ve looked for some legal authority but haven’t found anything past the standard “executor can make non-pro-rata distributions if they have nonintervention powers.<span style="mso-spacerun:yes">
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Jerry Sprute </div>
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