ENTITIES (NOT PEOPLE) THAT INHERIT IRAs
My question pertains to inherited IRAs. I have a traditional IRA with $436K in assets ($14K in cash, the rest in stocks) and a Roth with $119K in assets ($13K in cash, the rest in stocks). In my estate plan, I have directed that one-third of my assets be given to each of the following:
–my church
–my medical school
–my residency training program
I have no dependents or descendants.
The Secure Act got me to wondering how to have the assets in the two IRAs distributed to the three beneficiaries after my death, while also minimizing taxes.
Thanks for any help you can offer.
Permalink Submitted by Alan - IRA critic on Mon, 2020-01-20 23:37
Assuming they are all qualified charities, there will be no taxes due for these entities. And with no individual beneficiaries, naming these entities will not affect any stretch for an individual. You will have to appoint someone to notify these entities of your death and provide them with death certificates and the account number and name of your IRA custodian. They will have to take it from there, will probably instruct the custodian to sell everything to cash before distributing.