ljwalters Posted January 2, 2012 Report Share Posted January 2, 2012 Just got a call from client’s broker on speaker with client. I guess there was an A B trust set up that was should have gone into affect when one spouse died. And this did not happen. Everything goes to the surviving spouse and then the children. Broker wanted to know the consequences. I told him to ask a trust attorney. The only possible tax consequence was that they did not close out the IRA when wife died. (I told them to twice) The IRA goes to husband and is going to be changed this week. Wife died in 2009. RMD for 2010 was $173. on wife’s IRA. I do not see any consequences with such a small RMD. What do you think? Linda Quote Link to comment Share on other sites More sharing options...
ed_accountant Posted January 2, 2012 Report Share Posted January 2, 2012 The surviving spouse is required to take the RMD annually. The IRA will be taxable upon distribution.. Quote Link to comment Share on other sites More sharing options...
ljwalters Posted January 5, 2012 Author Report Share Posted January 5, 2012 Spouse claimed the RMD in 2010. If spouse claimes RMD there is no IRD? Linda Quote Link to comment Share on other sites More sharing options...
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