I didn’t realize that we were discussing a case of fraud or extortion. Of course, if the person is being forced or misled to do that, it is wrong. It could even be criminal. I just didn’t read the question that way. What you described happens far too often, but the voluntary giving is much more prevalent. I was never referring to a situation which the person was under duress. But, the principles of the Roth IRA and tax avoidance still apply. I apologize for the misunderstanding.
Thanks for the correction, good point, you’re right. 
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You brought the element of cheating to the discussion, I just responded to your post. (post #15)
I try not to take myself or anyone in the forum too seriously. But after eight decades on this planet I’ve seen many lives ruined by parents leaving too much for their offspring.
They’re the “beneficiaries” of money given to them early enough in life to snuff out all the things that lead us to a productive and fruitful lifetime. They’re called Trust Babies, and in many cases it’s a pitiful sight to watch unfold. It’s similar to what happens to many lottery winners.
Here’s an example:
I didn’t call any person “dumb.”
I called the decision dumb. Referring to an action taken by an individual is not calling that individual “dumb.”
I have made countless dumb decisions and taken many actions that were dumb at the time or later turned out to be so. That doesn’t make me a dumb person.
I think that if you were to reflect on your life that you could come up with at least one dumb action or decision you have made.
If that is not the case, you are an exception to most people.
I agree with you.
My son is a money manager and he tells me stories that would break your heart with the way money changes kids. I was in medical malpractice insurance for years and heard stories of kids trying to pull the plug on their parents in the hospital. Shades of Talladega Nights! One of the funnier scenes, but maybe too real. It has been said that most inherited fortunes do not make it past 3 generations unless the ones inheriting it actually help produce it. Free wealth is a two-edged sword, and most cut their own head off before it’s all gone unless an envious family member doesn’t do it first.
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I disagree. You are splitting hairs. That’s just semantics. When I do a dumb thing, I am dumb. If I make a mistake, that’s different. Your argument won’t hold up with most people out there.
If what you say is true, then whether a person is a dumb person or not, depends on their last act?
I suggest that is not the case. Very smart people sometimes make dumb decisions and do dumb things. That does not make them a dumb person. It’s not a case of semantics, it’s a case of performance over time and the results of that performance.
A similar conclusion based on a different set of facts would be that of a abusive and immoral person doing a noble act. The act might be noble but that one act would not make the immoral person a noble person.
At the time of the Dumb act!
How long does the label of “dumb person” remain?
Personally, I welcome information that proves some of my beliefs, ideas and past deeds were then or are now wrong, dumb, stupid or inaccurate.
Learning that I made a dumb decision or committed a dumb act makes me a smarter person.
So many people are worried about offending their friends who are screwing them.
I agree with you. They last as long as people remember the dumb act. And, we should embrace our dumbness as it makes us smarter and a better person . . . as long as we learn from them.
Looks like we’re getting closer to agreeing. But I’d like to think that my friends and family don’t judge me by my last acts alone. I make way too many mistrakes.
Update. I did get my sister in law to pull the plug on the UL policy idea. She may do some Roth conversions, whether there’s long term tax savings of any significant amount is difficult to determine. The biggest benefit I can see is her heir would not have to deal with the 10 year withdrawal rule and has more flexibility with the money.
Now, if I can just get her out of Edward Jones…
p.s. Like everyone else, I’ve made my share of dumb mistakes though many of them seemed like smart things given the info I had at the time. I learned something from most of them.
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I agree with you. I was just reading in the book of Romans this morning about judging others. Judging others is not caring for them. So, we should not judge others unless we expect to be judged in the same way. Said another way, do unto others as you would have them do unto you. Our past stupid acts are just that, in the past. We should strive to not do stupid things, but we always will. And, that goes for every human that walks on the earth.
My understanding is that the inherited IRA 10 year withdrawal rule applies both for a traditional IRA and a Roth IRA.
The only exceptions to the 10 year rule in addition to a spouse include a chronically ill/disabled individual, a minor child or a less than 10 year difference in ages.
I understand. That applies to the Minimum WithdrawalAmount I believe, but there would still be no taxes on the Roth IRA.
Joe
Looks like you’re right. I didn’t know that. I thought the govt enforced the 10 year rule so they could get the taxes on the taxable accounts and that it didn’t matter for the Roth. But I guess they just don’t want anyone to have inherited IRAs of any type for very long.
IT it was a Roth, why not just take the full amount (since there would be no tax assessed) and just put it in an IRA of their own?
Can you do that? Aren’t there limits on what you can put in an IRA?
The IRA has to be formally designated as an inherited IRA: something like (name of deceased owner) for the benefit of (name of heir).