One of the biggest estate administration mistakes that people make after someone passes away, concerns something that is not technically part of the estate at all. It has to do with inherited IRAs.
Because these accounts are given to beneficiaries directly and they do not go through probate, they are not part of the estate.
However, the importance of IRAs to overall inheritances can be enormous. Therefore, it is vital that their administration be carefully considered.
If you are the person named as the IRA beneficiary, you have some decisions to make, as the Wills, Trusts & Estates Prof Blog discusses in “Practical Issues When an IRA Owner Dies.”
The biggest thing to understand is that there are tax consequences for any decisions made about what to do with the IRA. Those consequences are not the same for everyone.
They depend on the relationship between the beneficiary and the deceased. These tax consequences are big enough, that it is important to seek professional tax advice and to do so quickly.
There are penalties, if decisions are not made within certain time limits.
If you are not certain who to talk to about what to do with an inherited IRA, then talk to the elder law attorney who is assisting with the administration of the estate.
The elder law attorney can help direct you to a professional who can assist.
Reference: Wills, Trusts & Estates Prof Blog (Oct. 4, 2017) “Practical Issues When an IRA Owner Dies.”
I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.
The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!
Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.
Josh Nelson, and his staff, have been amazingly helpful to our family. The ins and outs of nursing homes, the rules and regulations that govern Medicare and Medicaid are daunting and the folks at Nelson Elder Care Law have been informative, responsive, and above all, empathetic. I cannot emphasize enough how their service has taken a weight off of our shoulders especially during a world pandemic that has targeted nursing homes across our country. I highly recommend retaining Josh and his firm!
I had a simple legal question to them that I needed answered and they very helpful in giving me the information I needed. I highly recommend them and will reach out to them if I need more advice or assistance. Thank you for taking your time to just answer a couple of questions I had!