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Medical expenses paid before death by the decedent are deductible, subject to limits, on the final income tax return if deductions are itemized.
Medical expenses not paid before death are liabilities of the estate and are shown on the federal estate tax return (Form 706). However, if medical expenses for the decedent are paid out of the estate during the 1-year period beginning with the day after death, you can elect to treat all or part of the expenses as paid by the decedent at the time they were incurred.
However - and that is very important - medical expenses may not be deducted from estate income (Form 1041) and may not be passed to beneficiaries.
Let me know if you need any help.Be sure to ask for clarification if needed.
This does not answer the critical questionn. Can money from the IRA be moved into the estate?
That is possible.
The estate may be the beneficiary of IRA accounts.
If the beneficiary is not named on the IRA account or a named beneficiary disclaims his/her share - the estate would be automatically treated as a beneficiary.
In this case distribution will be made and reported to the estate.
Let me know if you need any help.