Bond Ladders and Beneficiaries in a tIRA

[Rianne]

Most of our bond ladder is in the tIRA. It occurred to me our beneficiaries will be inheriting a mess. More reasons for Roth conversions, but how would beneficiaries handle what we have now?

We have multiple beneficiaries. Do they wait until the ladders mature and then divvy up? The longest rung of the ladder is 2027, not too far off. But this is something they all have to agree with. I wish I'd thought of this earlier.

 

[audreyh1]

The securities will be split up between them by the brokerage so each can sell what they want. They don’t get to choose to wait.

I’d say don’t worry about it. Focus on your needs.

 

[COcheesehead]

They can be liquidated at the market value turned into cash and divided. My FIL had multiple investments, the executor sold it all to cash and divided it up. It was pretty simple. Any bonds purchased in the recent past may actually be above market so it could be a good thing.