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GiftLaw Pro Home   >  Chapter 4 - Specific Property Gifts  >  4.6 IRA, Pension and IRD  >  4.6.2 Distributions to Children and Other Heirs  >  Basic Quiz

Basic Quiz - 4.6.2 Distributions to Children and Other Heirs

1. It is permissible to have an IRA pay to multiple beneficiaries, such as to all the IRA owner's children.
           
2. An IRA, like a capital asset such as stock, receives a step up in basis at the IRA owner's death so that the beneficiary on receipt of the IRA pays no taxes.
           
3. The designated beneficiary is the person or entity that will receive the funds from the IRA when the owner passes away.
           
4. If an IRA is paid to a QTIP trust, the distributions from the IRA to the trust will be made on the QTIP beneficiary's life expectancy.
           
5. The designated beneficiary is determined on the date of death of the IRA owner.
           
6. If there are multiple beneficiaries who greatly vary in age, it is best to create separate shares with the IRA.
           
7. If an IRA owner passes away and the IRA is paid to the estate of the IRA owner, distributions of that IRA must be made over a five-year period.
           
8. If funds from an IRA need to be used to pay for estate taxes, there will also be income taxes to be paid on those IRA funds.
           
9. Because the designated beneficiary is determined in the year following the IRA owner's death, it is possible for the executor of the estate to change the IRA beneficiary listed on the IRA designated beneficiary form with someone else who was not listed on such form.
           
10. In order for a disclaimer to be valid it must be given in writing to the executor within nine months after the IRA owner's death.