Trusts & Estates Law/inherited IRA

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Question
My mother is 82 and has an IRA for which I am the beneficiary.  It is expected that I will “share” this with my 3 siblings upon her death.  How would I do this?  Will I be able to “cash it in” ?  Or, while she’s alive, should I have her change the beneficiary to all 4 children, so that upon her death, we would each receive a smaller IRA?
Thank you.

Answer
Hi Diane,

You cannot share an IRA.  You must change the beneficiary while she is alive.  Or at least I am not aware of any way that a person can make a gift of an IRA to a non-spouse.

So you should do what you suggested.  Change the beneficiary to four equally.  

Regards,


David Disraeli
www.pcfo.net

Trusts & Estates Law

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David Disraeli

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I can answer general questions about estate planning and trusts. I can also answer questions about estate tax reduction and advanced charitable giving, family partnerships and asset protection. I may have already answered your question here: www.lifeplanblog.com or here www.pcfo.net

Experience

I have worked for 24 years with clients and their attorneys to formulate estate plans to meet client goals. I have found many mistakes made by client attorneys and were able to have them corrected. I focus on making sure that beneficiaries are protected from current or future spouses and lawsuits so the wealth stays in the family. I have also published a book on Aging Parents which can be found on Amazon https://www.amazon.com/dp/B003VP9WTG

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President and founder of The Personal CFO Inc.

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www.pcfo.net www.lifeplanblog.com

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Certified Financial Planner 1994

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