Tuesday, April 17, 2012
Inherited IRAs survived a Congressional proposal to limit their duration to 5 years rather than the life expectancy of the beneficiary.
There are several issues that arise for the beneficiary:
1. The rules for trusts receiving the benefits must be strictly complied with. The advisor in the article has a more negative take on trusts as beneficiaries than I do. The benefits of trusts as beneficiaries can be great and the compliance is not that difficult.
2. Inherited IRAs should be re-titled after death to read: "William Smith, Deceased (date of death) IRA F/B/O James Smith, Beneficiary.