Quote:
Originally Posted by cabmandone
List them as beneficiaries on the account. When he passes they'll receive a step up cost basis and it will go to them tax free if I'm not mistaken.
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Quote:
Originally Posted by MikeSid
This is the correct answer. No need to make it any more complicated than this. Each GC will inherit 1/5 of the account and can cash out their share with zero tax consequences due to the stepped up basis at date of death and the post-tax nature of the funds in the account.
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You guys have the simplest answer. That is certainly the best, least complicated idea. But ... if the grandkids (or their parents) want to use the money for college education/529 savings and my dad lives for another 15 years, that doesn't work out there.
I appreciate all the advice.