USA Mom passed away, has IRA. How taxed?


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Mom passed away and had an IRA. Her medical expenses were $80,000 in 2021 but not all were paid from her IRA. Is the remaining IRA balance of $110,000 subject to her tax rate? She has a Revokable Living Trust which it could be rolled into which is subject to the 10 year distribution rule. I am confused. Should I "inherit" the IRA as the beneficiary of the Trust (subject to my tax rates and the 10 year rule. My wife and I have >$150,000 w-2 annually) or is there a better tax strategy lessening the tax burden by utilizing the Trust?
 
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kirby

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There is a lot of money involved here, clearly. And as money from IRA is used to pay expenses or distributed it becomes taxable. I suggest you get tax guidance from a tax professional.
 

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