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No Trust or Will Beneficiaries

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Doug

Guest
State=New Hampshire

Step-father passed this August 4th. A large IRA, which he had been transferring money out of monthly, has his children as beneficiaries.

The mutual fund company(TX) was transferring the money each month from the IRA to a muni fund. The account is in my stepfather's name with his children listed as beneficiaries.

Question: The mutual fund company claims that because they were not notified until this October of his death, then the monies withdrawn during August and September will be taxable to the deceased....thus my mother????

My understanding of the law is that ownership transfers directly to the beneficiaries upon death. If true, should not the tax liability also pass to them??

My mother wants to file jointly, for the tax benefit, and has no problem paying the taxes for earnings while my stepfather was alive. However, it doesn't seem right that because the kids wait, my mother gets stuck with the tax bill...

There are dividend paying stocks too that are in joint names, both my stepdad and one of his sons. The son has not changed anything on the DRIP account, thus the 1099 is bound to come to my Mom. Doesn't seem fair??? Help is greatly appreciated.

[email protected]
 


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GG

Guest
This is a very complicated bunch of questions. May I suggest that you ask a lawyer or benefits person what they would do, at your company, as from your email address you are with a very smart company that has people who do what you asked. Often instead of a legal answert, you need a practical one and the guys in TX are following their rule book, and it may be wrong.
 

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