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In 2017, my great aunt passed away and she left her estate and retirement account (an IRA) in a will to myself and family members. She was nearly 80 years old and she lived in California. Within one-year monies were distributed for the sale of her home. But the will distribution for her standard IRA has dragged on for the last few years. When my family members make inquires to the lawyer as to why it's taken so long for distribution, he claims that he's waiting for a form from each of the beneficiaries that show a signature that we've received a K1 tax form. In fact, he's been adamant that we quickly file taxes on the IRA before he distributes the funds before we've received the funds from the IRA. He's now had the requested signed for several weeks, but he does appear to be proactive in getting things done.

Admittedly, I'm ignorant of probate laws. But does it sound like the lawyer is following standard protocol, or does this sound fishy? Does inheritance IRAs need to be settled in a specific timeframe?

  • Do you want to roll the distribution over into an IRA for you? If yes, you need to follow specific rules or you will be taxed immediately. Sorry, I don't know the rules well enough to advise you. – Mattman944 Jul 5 at 23:15
  • It all depends on the exact designation of beneficiaries of the IRA: "myself and family members" is far too vague a description. But, if there are several beneficiaries, then the IRA needs to be split up into several different Inherited IRAs, each having its own RMD requirements. Also, this is not something that is generally handled by the executor of the estate but by the IRA custodian. So maybe it is the estate which is the IRA beneficiary and it is the estate that is delinquent for whatever reason in disbursing the money to the beneficiaries of the estate? – Dilip Sarwate Jul 6 at 3:38
  • When I mentioned "myself and family members" I meant beneficiaries. There are a total of 10. – wilberteric Jul 6 at 4:29

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