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Thomas McJD
Thomas McJD, Attorney
Category: Estate Law
Satisfied Customers: 3170
Experience:  Wills, Trusts, Probate & other Estate Matters
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My father died in April 2015 without beneficiaries on s Ira.

Customer Question

My father died in April 2015 without beneficiaries on his Ira. It has flowed into estate funds. With these dollars he will earn approx $300,000 from Ira/pension/social security/annuity. Is there a way to avoid any taxes on this inflated income? Can distribution be made and heirs pay income taxes at their rates? Can a benificiary IRA be set up NOW for each heir and depleted over the next 5 years? I realize now the mistake he made and I am trying to rectify the situation as best as I can.
Submitted: 1 year ago.
Category: Estate Law
Expert:  Infolawyer replied 1 year ago.

Hello

Expert:  Infolawyer replied 1 year ago.

I am sorry for your loss.

Expert:  Infolawyer replied 1 year ago.

Is this annual income or money in the account? is the estate open? is there federal or state estate tax triggered?

Customer: replied 1 year ago.
His normal annual income would have been about 55 K The estate is open and I'm wanting to close it after taxes are filed (after Jan 31st) Total estate valued at about 750k. State inheritance tax has been prepaid for this amount at 4.5%. Federal tax not required since value of estate is low
Expert:  Infolawyer replied 1 year ago.

You cannot shift the current accounts until estate closed. Normally there would be a fiduciary return filed on the income of the estate.

Customer: replied 1 year ago.
there is nothing to do to avoid taxes?
Expert:  Infolawyer replied 1 year ago.

You can offset income with expenses, deductions on the return.

Expert:  Infolawyer replied 1 year ago.

But estate assets are what they are and the income is what it is. Once estate closed you may seek to set up trusts with estate counsel to take funds out of personal name and engage in personal estate planning.

Expert:  Infolawyer replied 1 year ago.

Kindly let me know if that is clear and if I can clarify anything

Customer: replied 1 year ago.
Not sure I understand but maybe I need to sit down with someone. Questions are too many for this type of service. Thank you anyway. I'll seek answers elsewhere. Do not charge my account as this has not yielded any results.Thanks again
Expert:  Infolawyer replied 1 year ago.

ok

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