QUESTION

I need to know how to free up funds from deceased father's business IRA without becoming liable to the IRS.

Asked on Nov 26th, 2012 on Estate Litigation - Virginia
More details to this question:
My deceased father has a business IRA and has left funds to myself, my brother, and his significant other. The fund holder, Edward Jones, won't release the money unless an appointed representive signs for the money but my father's estate lawyer, the appointed rep., won't touch the funds as he only oversaw his personal funds and not those of his business. He could sign for the funds but this might open him up to litigation from the IRS to whom my father owes a great deal of money. He advised me a year ago to leave the money alone but later suggested I could become a probate and have the funds released. I do not know how to become a probate nor do I even know if this is the right course of action. The sum of money is only a couple of thousand so spending a lot of money with an attorney to figure out how to release the funds seems ridiculous. Any thoughts? This has been on hold for over a year with no resolution on the table. Thank you very much for your help.
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1 ANSWER

Litigation Attorney serving Greenwich, CT
Partner at Hilary B. Miller
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There is no such thing as a "business IRA," and all funds in an IRA pass according to the beneficiary designation made by the account holder. If there are multiple beneficiaries, then each should sign. You need to have this matter reviewed by an attorney, because the facts do not make any sense.
Answered on Nov 26th, 2012 at 3:22 PM

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