FloridaJim57
Recycles dryer sheets
Most of my cash is an IRA. When I bequeth money to my relatives in my will, is it going to be difficult or complicated for the executore to distribute it?
Most of my cash is an IRA. When I bequeth money to my relatives in my will, is it going to be difficult or complicated for the executore to distribute it?
IMO, it is better to designate beneficiaries to your IRA. That way there is no chance it will go through probate.
IMO, it is better to designate beneficiaries to your IRA. That way there is no chance it will go through probate.
That's what I've done with my IRA and 401K. Bank accounts I've just used POD...No need for probate with beneficiaries and POD's in place, just need a death certificate. They may need to roll things like IRA's and 401k's to their own "named" accounts but that's pretty simple too. Or take the cash, but that could be a heavy tax hit if done in one year. (Rules do change so stay up with it.)IMO, it is better to designate beneficiaries to your IRA. That way there is no chance it will go through probate.
What he said. That will greatly simplify things for everyone involved.
I believe that the beneficiaries will each have to open "Inherited IRA" account with a custodian. I had to when I inherited my mom's Roth. Probably the easiest is to open them with the house that now holds the IRA(s). Withdrawal rules have recently changed, so be sure that the beneficiaries understand the new rules.
I believe that the beneficiaries will each have to open "Inherited IRA" account with a custodian. I had to when I inherited my mom's Roth. Probably the easiest is to open them with the house that now holds the IRA(s). Withdrawal rules have recently changed, so be sure that the beneficiaries understand the new rules.
Most of my cash is an IRA. When I bequeth money to my relatives in my will, is it going to be difficult or complicated for the executore to distribute it?
Pretty standard practice by the investment companies/banks.DW is currently having to deal with this very thing. She had to open an inherited IRA account with the house that held the account. in her case 2 different custodians since there were 2 (actually 3) IRAs. Don't ask! Only then could DW move the 2 inherited IRAs to Fidelity into her own Inherited IRA account. A lot of paperwork for no real reason.
Another for the beneficiary designation. Simple, and easy to change if needed.
Everything we can put into TOD/POD/beneficiary has been done. We only have one DS, so not a lot of thought into how to distribute.
Pretty standard practice by the investment companies/banks.
I set this up for DF (no IRA) and that part was distributed fairly quickly with no work on my part other than notification and sending a death certificate copy. Beneficiaries had to do the follow up.
The real property however, has been a royal pain.
If you have a trust set up (revocable living trust) you put the house as owned by your trust. Then it bypasses probate when you die. Trust executor can sell it and distribute per the will guidance.Where we live, even real estate can be designated TOD. I think cars can as well, but we have not looked into that.
If you have a trust set up (revocable living trust) you put the house as owned by your trust. Then it bypasses probate when you die. Trust executor can sell it and distribute per the [-]will[/-] trust guidance.
Yes, trust guidance is correct. Just got careless in language. Although the trust has as part of it a pour over will to cover things not specifically listed.FIFY (I think?).