The new IRA rules are simpler, but they aren't simple. Avoid these traps. All potential heirs should be named before death and on the beneficiary form, not just in the owner's will. If your forms aren't right, your executor probably can't fix things. Another problem arises if the primary heir-say the spouse-happens to die after the owner but before claiming the account. Under the new rules the executor may not be able to exercise disclaimers or exercise a spouse's right to assume ownership of an inherited account and name new beneficiaries. The result is that the account may have to be drained within five years. The IRS may relent on this point, but meanwhile make sure to focus on IRAs as soon after the owner's death as possible.
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