ok do you need more info
Annuities and IRAs do not participate in the stepped up basis at death.
You cannot gift an IRA.
Passing at death is better.
But If he withdrawls from the IRA... can he / should he gift that
why is it better
Since the IRA cannot be gifted, he would have to withdrawal the money being taxed, and then he would have to gift it.
ok... so alternative is that he dies, we inherit and pay income taxes on what we inherit - right
Assuming when the money is split at death the beneficiaries are in a lower tax bracket then passing it at death is best.
The account also continues to grow tax free.
ok.. and if beneficiaries are at a higher tax bracket.. then may be better to withdrawl and pay taxes at his lower rate now (not considering the tax free growth)
The only reason to cash it out now and gift the funds would be a time value of money valuation.
ok thanks !