@mjc4maureen wrote:
(2) When you said "your estate files an estate tax return", who is that person? My Will executor? In this case it will be my daughter who is my beneficiary too.
(3) If my last RMD withdraw after my death will be reported on estate tax return, that RMD is added to the estate. As long as my estate doesn't reach estate tax exclusion, that RMD doesn't incur tax consequence. A bit loophole here, isn't it? In other words, no tax paid on that last RMD for this case.
If you have named beneficiaries in your IRA then that passes directly to the beneficiaries outside of the estate and is not included in the estate at all.
The executor of the estate must pay the tax on your last RMD (from the estate). That is part of your final tax return filed by the executor and has nothing to do with the estate tax.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
