Q: IRA and taxe consequences to beneficiaries
my husband's father left an IRA to his 3 sons. Apparently the way it was set up is that the IRA was left to the estate rather than naming beneficiaries. The executor is now stating that all 3 sons equally owe the tax on the IRA, nearly a year after distribution. We haven't received any formal copies of the 1099 reflecting the amount. The taxes also have yet to be filed. What, if any rights do we have to fight the fact that he failed to immediately file the taxes and give us the option of paying the taxes prior to distribtution. The execturor is also stating that we can claim the owed amount on our current 2017 tax return as income to save money. Is this all legal? Thanks for your help.
A: That was a big mistake for the decedent to not name beneficiaries for the account. The 3 sons should ask for the statements to verify the distributions. The executor should be filing a Form 1041 with a Form K-1 to each of the 3 sons to show them what their share of income and expenses would be.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
