It is easy to find material that will tell you what a great thing it is to “avoid probate”. Maureen Mangiardi’s father, Dr. Joseph Mangiardi,managed it for the bulk of his estate. According to a recent decision in US District Court for the Southern District of Florida, there was $4,577,360, mostly stocks, in an inter vivos trust and $3,857,576 in an IRA. The estate tax of $2,478,658 was to be paid out of the inter vivos trust. So the IRA could be directly split among the beneficiaries. Ms. Mangiardi’s share was 11.1 % leading me to infer that it was an equal split among the Doctor’s nine children. Now the IRS is trying to get the IRA distribution from Ms. Mangiardi to cover part of the estate tax. This is a little disturbing since Dr. Mangiardi died in 2000.
IRS To Collect Estate Tax From Beneficiary After More Than A Decade – Forbes