I'm trying to determine who would owe the taxes. Here's a simplified situation.
My mother passed away in January 2018. She left an IRA (pre-tax) of $100,000. Her wishes were to liquidate the IRA and distribute the money equally to four children. Her intent was for the estate to absorb the income tax hit, so that the children wouldn't have to deal with the taxes. Let's assume there was no gain or loss on the investment, only that taxes would be due.
My question is, who would be liable for reporting and paying the taxes? Would it be my deceased mother at her individual tax rate or each heir at their individual tax rate or the estate at the higher estate tax rate?
