Legal Question in Wills and Trusts in Texas

My mother died in July and part of her estate was a small IRA. Since the money in the IRA was part of her estate along with her Checking, Savings and CD's, do I have to pay taxes on the money that I received from her IRA? It was only $1,000!


Asked on 1/21/10, 11:02 am

1 Answer from Attorneys
Arthur Geffen Arthur H. Geffen, P.C.

There will be income tax due on monies withdrawn from the IRA. If you are the named beneficiary, then you have the option of using a technique that is sometimes called a "stretch ira". Essentially you rollover your mother's ira into yours and depending on whether or not she was into Required Minimum Distributions, you take distributions based upon your age instead of hers or just keep it until your RMD age.

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Answered on 1/26/10, 11:25 am


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