Estate Planning

How can my children save taxes on the proceeds of an IRA they received as a beneficiary of my deceased spouse ?


Unlike yourself who is entitled to roll over an IRA from your deceased spouse, your children must pay taxes on the IRA money they inherit. The trick is to stretch out the required minimum distributions from the deceased spouse's IRA since the IRA cannot be rolled over into your children's name. If your spouse died before 70 1/2, your children must take the money within five years or their own life expectancy. You should retain a CPA to determine the minimum distributions. If your spouse died after reaching 70 1/2, it is even more complicated. Speak to your local CPA.
Answer Provided by: CPAdirectory

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