I have a feeling that you cashed in the decedents IRA and had to pay income tax. Since IRA's with decent estate planning can be "stretched" and avoid penalties and substantial tax issues, its probably too late to do much. People need to plan, talk to CPA's and investment advisors, and even involve beneficiaries so that these kinds of tax surprises do not happen. I also doubt that "estate taxes" are the issue. You are probably thinking about income taxes. There is a great deal of confusion because the average person does not understand the difference when they get a notice from the IRS that they owe money.
Christopher L Cauble Estate Planning Attorney
Posted over 14 years ago.
I have a feeling that you cashed in the decedents IRA and had to pay income tax. Since IRA's with decent estate planning can be "stretched" and avoid penalties and substantial tax issues, its probably too late to do much. People need to plan, talk to CPA's and investment advisors, and even involve beneficiaries so that these kinds of tax surprises do not happen. I also doubt that "estate taxes" are the issue. You are probably thinking about income taxes. There is a great deal of confusion because the average person does not understand the difference when they get a notice from the IRS that they owe money.