Thanks so much for your reply. Any properties that are owned as joint tenants with right of survivorship or as tenants by the entirety pass automatically to the survivor. Any joint accounts vest automatically in the surviving joint owner. Any insurance policies, accounts, and retirement
accounts with a designated beneficiary, including the IRA, pass directly to the named beneficiary. Only the other assets
, which would be considered probate assets are covered by the will. You are entitled to your share of the probate assets and any of the other assets I mentioned above where you are the joint owner or named beneficiary.
There will be no Federal
estate or inheritance
tax because you are under the Federal limit and WV does not have an estate or inheritance tax. The IRA will be subject to tax when liquidated because it was not previously taxes (unless it is a Roth IRA
Pursuant to the IRS
Tax Topic at the following website regarding an IRA inherited
from a spouse (http://www.irs.gov/Retirement-Plans/Plan-Participant,-Employee/Retirement-Topics---Beneficiary):
"Inherited from spouse. If a traditional IRA
is inherited from a spouse, the surviving spouse generally has the following three choices:
Treat it as his or her own IRA by designating himself or herself as the account owner.
Treat it as his or her own by rolling it over into a traditional IRA, or to the extent it is taxable, into a:
a. Qualified employer plan,
b. Qualified employee annuity plan (section 403(a) plan),
c. Tax-sheltered annuity plan (section 403(b) plan),
d. Deferred compensation
plan of a state or local government
(section 457(b) plan), or
Treat himself or herself as the beneficiary rather than treating the IRA as his or her own.
If a surviving spouse receives a distribution
from his or her deceased spouse's IRA, it can be rolled over into an IRA of the surviving spouse within the 60-day time limit, as long as the distribution is not a required distribution, even if the surviving spouse is not the sole beneficiary of his or her deceased spouse's IRA."
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