Regarding taxes on IRA money I guess there are different ways to view it. Anyone who inherits it will have to move it out of the IRA over 10 years and it will be treated as income. If an elderly person wanted to and can afford to do so, they could pull it out and pay taxes on it. Essentially doing the beneficiary a favor and if invested in stocks then you get the step up basis.

Personally I always view any inheritance as a very generous gift and don't mind paying taxes on it but I know parents and grandparents who can afford it, and unfortunately some who maybe can't, will go out of their way to be generous. And sadly some will take advantage of seniors.

I don't expect to be around at 90 so this will end up being an issue for my wife and she is overly generous.


Rich