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r/tax • … • u/belgarth

How are estate taxes paid if all assets are in brokerage/ira accounts with beneficiaries?

My understanding is that accounts with beneficiaries bypass probate and are distributed directly to the beneficiaries. If that is the case, if the total assets exceed the estate tax exemption how does the estate pay the required estate tax if all assets get distributed directly to beneficiaries?

Am I incorrect on how beneficiaries work? Or does the estate have a way to claw back the tax liability from the beneficiaries?

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