Thanks for the comments Mark,
marknyc wrote:Questions/comments:
1. How can the trust have a capital loss carryover if it was a grantor trust during decedent's lifetime and an irrevocable trust taxed as part of the estate 1041 after death?
1- The homestead was part of the probate estate. Once probate court approved homestead status, the homestead was deeded to the trust. The trust sold homestead at loss to the FMV at DOD. Valid? If not, where does the loss carryover? Or not allowed etc?
marknyc wrote:2. For RMDs, not sure what you mean by "life expectancy table for a non individual." Since the estate is the beneficiary of the qualified plan, RMDs would be based either (1) on the 5-year rule, or (2) over the remaining life expectancy of the decedent as of the year of death if death occurred after the owner's Required Beginning Date.
2- I think we are saying the same thing here. Your 2 applies as decedent age was in the 80s. “Use the life expectancy listed next to the owner's age as of his or her birthday in the year of death. Reduce the life expectancy by 1 for each year after the year of death.” Opps , meant to type “ life expectancy table for a Single Life Expectancy."
marknyc wrote:3. There is no need for an estate to remain open for the sole purpose of collecting and distributing IRA or qualified plan RMDs. Instead, the executor can assign the income interest of the qualified plan to the estate beneficiaries and close the estate. This does not extend the required payout period for the RMDs. see 1.691(a)-4(b)
3- pause to think.. before thinking this through completely.. my response. There are many plr that state what you are proposing. For example
https://www.irs.gov/pub/irs-wd/0826028.pdf. However how is the executor to assign the income of the qualified plan to the beneficiaries? The only way I’m aware is for the custodian of the qualified plan willing to execute the assignment. Is there another way? If so please educate me.
The custodians that I have communicated will not except a referenced PLR which is understandable because of each PLR stating “This ruling is directed only to the taxpayer that requested it”. So without costly PLR, the custodian will not assign.
If I missed the point, excuse me in advance and please expand and help.