Thank you, @Opus 17 . If the Inherited IRAs go to the contingent beneficiaries or estate, that would we welcomed as long as the sisters aren't taxed on the Inherited IRAs as a distribution or as ordinary income. Would they be?
The sisters originally wanted the IRAs to go to their Mom (surviving spouse, per the IRA Custodian agreement terms) because they believe this was their Father had really intended, but the beneficiary designation selected was "To my descendants who survive me, per stirpes." so the IRA Custodian said they need to honor that.
The sisters did contact their estate attorneys and tax professionals but even they don't have a lot of experience with disclaimers, let alone the scenario that might be considered a non-qualified disclaimer, so I'm trying to help the sisters do further research as we inch toward the end of the calendar year, where an RMD would be required if they don't transfer the Inherited IRAs out of their Father's name.
Thank you so much for calling in reinforcements for their points of view, too! I realize this isn't straightforward and appreciate all points of view.
