The wife’s executors may be able to disclaim, in which case it will go to the niece as the contingent beneficiary. Depending upon the applicable state law, the wife’s executors may need to get court approval in order to disclaim.

The wife’s executors are unlikely to disclaim without the approval of the beneficiaries of her estate whose interests in her estate would be reduced by reason of the disclaimer.

Note that a disclaimer by the wife’s executors will result in the loss of the marital deduction for the IRA, so that it will be subject to estate tax in the husband’s estate instead of in the wife’s estate.

The wife’s executors must disclaim, if at all, within 9 months from the husband’s death. Given the time constraints, the wife’s executors should consult with counsel promptly.

Bruce Steiner, attorney
NYC
also admitted in NJ and FL

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