Upon the death of the IRA owner, the primary beneficiary (spouse) wishes to partially disclaim the IRA. They will meet all the requirements of Section 2518. Based on that:
1) Is there model language for a LOI (some custodians have a form while others just ask for a LOI)? The custodian we work with requires a LOI but gives little guidance.
2) While the model language may satisfy the IRC, it may not meet all the requirements of state law, so how does a primary beneficiary address state law?
3) Would you recommend a primary beneficiary hiring an attorney to draft the LOI?
1) It is cleaner to create multiple IRAs now so the primary beneficiary can disclaim an entire IRA account instead of partially disclaiming one IRA account? I've seen disclaimer forms where they allow beneficiaries to partially disclaim and IRA on a percentage basis. So it seems like it doesn't matter.
1) The RMD in the year of death will be based on the Joint Life Table, does disclaiming change the RMD life expectancy factor in the year of death on the balance disclaimed, given that the primary beneficiary will no longer be the spouse? The Joint Life Table requires the primary beneficiary be the spouse.
Thanks to anyone who has any experience handling disclaimers. It's very uncommon.