My father is 90 and has been in a hospice facility for two and a half months. He’s been declining and has now entered a phase close to the end. I am his POA for his Traditional IRA and his bank account. My sister and I are the beneficiaries of his IRA and his POD (Payable on Death) bank account.
I have been withdrawing from his IRA to cover his hospice facility costs and a little more to his offset his taxable income with his expenses. I’m ball-parking his taxable income to be zero.
I was talking to my sister and BIL about how to manage an inherited IRA, just so they know where we stand and what to expect. We all understand the situation and know what’s coming so this is not morbid or uncomfortable.
My sister and BIL are in the 33% tax bracket (as I’ve read here, that’s a nice problem to have). They were asking if I could withdraw more from Dad’s IRA before he dies so that it’s taxed at my Dad’s rate instead of their rate. I’ve done a quick estimation in a tax return program and I could withdraw another $36,000 to fill Dad’s 15% tax bracket.
Here’s my hesitation in doing this - I takes a few days to cash out an investment and transfer the money to his bank account. His IRA is at Wells Fargo. The last time I did a transfer his investments were sold the next day after my call but then it took a few days to get to his bank.
Here's my question - What happens if he dies before it gets to his bank account? Will it still be his IRA withdrawl? What happens if it is deposited to his bank account after his death?
Please don’t think this is morbid to ask about these things. My sister and BIL wanted to know if this can be done and I worry about things getting hung up in limbo if he dies while the transfer is in process.
He condition is very poor. We expected him to pass last week and I saw him today and he's kind of stabilized. He's getting comfort care only. The hospice facility is wonderful. When he was able to communicate he talked about being ready to go for a long time.
I’ll be calling Wells Fargo to ask about this tomorrow morning, but this forum has much smarter, more experienced folks.
I have been withdrawing from his IRA to cover his hospice facility costs and a little more to his offset his taxable income with his expenses. I’m ball-parking his taxable income to be zero.
I was talking to my sister and BIL about how to manage an inherited IRA, just so they know where we stand and what to expect. We all understand the situation and know what’s coming so this is not morbid or uncomfortable.
My sister and BIL are in the 33% tax bracket (as I’ve read here, that’s a nice problem to have). They were asking if I could withdraw more from Dad’s IRA before he dies so that it’s taxed at my Dad’s rate instead of their rate. I’ve done a quick estimation in a tax return program and I could withdraw another $36,000 to fill Dad’s 15% tax bracket.
Here’s my hesitation in doing this - I takes a few days to cash out an investment and transfer the money to his bank account. His IRA is at Wells Fargo. The last time I did a transfer his investments were sold the next day after my call but then it took a few days to get to his bank.
Here's my question - What happens if he dies before it gets to his bank account? Will it still be his IRA withdrawl? What happens if it is deposited to his bank account after his death?
Please don’t think this is morbid to ask about these things. My sister and BIL wanted to know if this can be done and I worry about things getting hung up in limbo if he dies while the transfer is in process.
He condition is very poor. We expected him to pass last week and I saw him today and he's kind of stabilized. He's getting comfort care only. The hospice facility is wonderful. When he was able to communicate he talked about being ready to go for a long time.
I’ll be calling Wells Fargo to ask about this tomorrow morning, but this forum has much smarter, more experienced folks.
