Disbursing the funds would make it taxable to the beneficiaries.
Gill
That’s the piece I was missing. I assumed it would be taxable to the estate. Isn’t that the case for RMDs? How is it reported to the beneficiaries? Or maybe I should say beneficiaries of the estate?
And my apologies if my terminology isn’t a 100%. It’s been almost ten years since I had to deal with this as executor for my mom’s estate. In her case, I seem to recall the IRA did go through probate (no named beneficiaries on the IRA) and then it was split three ways. But it’s been a while, so I don’t remember the details.