IRA - Death of owner

[Normannn]

Hi everyone I have a question about a client who had died and beneficiary is fiance who funded most of IRA. she had lots of credit card debt that was cancelled and owed the IRS and Mas Department of Revenue back taxes and the beneficiary is wondering if the IRS and Mass DOR has a right to the part proceeds from the IRA. I am under the impression that the IRA And Mass DOR can go after their money from the IRA before it's distributed to the beneficary. the IRA doesn't have any kind of lien forom both of them and wondering if we should distribute the IRA to the beneficiary and claim it as his?

[taxtrio]

Hi everyone I have a question about a client who had died and beneficiary is fiance who funded most of IRA. she had lots of credit card debt that was cancelled and owed the IRS and Mas Department of Revenue back taxes and the beneficiary is wondering if the IRS and Mass DOR has a right to the part proceeds from the IRA. I am under the impression that the IRA And Mass DOR can go after their money from the IRA before it's distributed to the beneficary. the IRA doesn't have any kind of lien forom both of them and wondering if we should distribute the IRA to the beneficiary and claim it as his?

Inherited IRA is the beneficiary's income. It will be taxable to him just as it would have been to the deceased.

It's just a question of when.