Estate Tax -IRA Beneficiary

[moemabel]

What is the name of your state? Pennsylvania

Friends father passed away with IRA going to spouse as beneficiary. Spouse died several years later with father's IRA passing through to children. Mother's IRA was not subject to estate taxation with children as beneficiaries. Father's IRA was deemed to be taxable since it skipped taxation through initial beneficiary spouse. Is this accurate?

Total Estate was over threshold so taxation is in play.

Please help asap.

 

[Snipes5]

Yes, unless mother converted father's IRA and named beneficiaries. Sounds like she did not do this.

Snipes

 

[moemabel]

Estate Tax-IRA Beneficiary

To: Snipes5

If I understand correctly, since the beneficiaries on the father's IRA were not named by the mother when she received the IRA in her estate, her estate has to pay Federal and PA State estate taxes on the IRA. After taxes are paid, then the executor/executrix can distribute the funds to whomever would have been named in the will, which were these same children beneficiaries.

Is this the exception to the general rule that IRA's pass to named beneficiaries outside the estate?

Thanks so much for your quick response.

moemabel