Did the estate inherit the brokerage account and other assets? What does mom's will indicate with respect to who inherits the residuary of the estate, disregarding the IRAs which are not part of the estate?Hey all, in administering my mom’s estate, my sister and I inherited a $120k Roth that we split. My brother wasn’t listed as a beneficiary because he owes the estate a lot of money, and mom didn’t want an automatic distribution to him if his overall inheritance wasn’t enough to cover his debt to the estate. It looks like his inheritance will be enough to cover his debt. I am therefore trying to determine what the value is of me receiving a $60,000 inherited Roth, which has to be liquidated in 10 years, compared to him receiving an inherited brokerage account. I would like to give my brother a brokerage account inheritance of equal value to a $60,000 inherited Roth. How do I do the calculation?
And are you considering overlooking mom's intent? She apparently felt that loaning brother his inheritance in advance should come out of his share of the estate..............
You must also pay off all her final debts, taxes, etc before what is left is split according to her will, so the estate may take awhile to settle or for you to know how much is left.
I would settle the estate as she intended. Then, if you and sister want to take a distribution from your inherited Roths and gift it to brother, that is your business. It should not take any special calculation attempting to compare a tax free Roth to a tax free settlement from the estate. If your Mom first contributed to the Roth prior to 2020, it's totally qualified and tax free.
Statistics: Posted by Alan S. — Fri Aug 30, 2024 11:19 pm