Glenn,

The RMD needs to be distributed in the year of death of the owner. The amount to be distributed is determined as if he or she hadn't died during the year. As cash basis taxpayers, the recipient of the distribution would include it in income in the year received. This could be the owner if death occurred after the distribution or the designated beneficiary if the distribution occured after death. In either case the distribution needs to be made in the year the owner died.

It is obviously IRD if after death and the designated beneficiary would be entitled to an estate tax deduction.

The year after death is a different matter.

Mary Kay may have a different take on this but this is my understanding of the rules.