jtc wrote:

- quote -

All non-IRA money should get a step up in basis, i.e. no tax
due.

But - The IRAs are a different issue. Did she have the IRA
accounts set up with beneficiaries listed? If so, they pass
independent of a will, although the will can reference the
IRAs to adjust the remaining assets. For the beneficiaries
to take the IRA withdrawals over their own lifetimes, the
proper beneficiary designation have to be done directly with
the custodian of the IRA. (And each beneficiary has his own
age-based RMDs)

If this wsn't done properly, IRS regulations allow the
maximum stretch to be based on the age of the deceased, 82,
so next year the RMD would be 1/9.1 for the 2006 RMD, then
1/8.1 for 2007, etc.

JOE

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Mother died 9-26-06 in Minnesota; her will left everything
in a 4 way split among the (adult) children.

The estate includes a cooperative apartment buy in refund of
40,000.00. The financial side leaves IRA's and other money
market funds ...nothing extensive and she had been receiving
funds from the IRA's already; she was 82.

the question is:
oldest sibling who is the executor wants to liquidate all
the financial monies and just split 4 ways...what would the
tax consequences of that be for us.

I am assuming that the monies would have to pass through the
estate which is now in probate and we have been told that it
will take 4 months to finalize all of that by law...she has
no creditors. The funds from the sale of the cooperative
unit will be available to the estate as of November 15.

Any questions that we should ask of the financial advisor
before all of this gets liquidated? thanks

--
jtc
jtamchay[at]yahoo.com

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >