If the brother was named as beneficiary, the IRA would not go through probate (although state law might have delayed its distribution if there were claims by creditors or a spouse).  Are you sure that there is a penalty for 2024?  IRS waived that for a lot of people who wanted to follow the earlier version of the 10-year rule (nothing required annually, all could be taken in 10th year).  

Based on the information that I have received the brother had 2 options, Life expectancy Payments or the 10 year rule.  His deadline for making this election was December 31, 2024 so since no election was made it defaults to the 10 year rule.

The question wasn't about the withdrawal options.  It was about whether a penalty applies if the choice was not made in 2024.   A lot of regulations and announcements have been issued the past couple years about waiving penalties because of uncertainty about the options.  Don't spin your wheels asking for a penalty to be abated when it has already been forgiven.  

From the IRS:

"Inherited IRA with annual RMDs (starting in 2025)

• Annual distributions: You must take annual RMDs in years one through nine of the 10-year period. The amount is based on your own life expectancy.
• Final distribution: The remaining balance must be completely withdrawn by the end of the 10th year.
• 2021–2024 waiver: The IRS waived penalties for missed RMDs for these specific inherited IRAs for the years 2021 through 2024. As a result, the first annual RMD for these beneficiaries is due in 2025."

@qbteachmt  I'm still looking for where IRS says that, but you're right.  The more we know, though, the more we don't know.  Like, does the 10-year rule even apply to the brother, if he is an "eligible designated beneficiary" -- "not more than 10 years younger than the deceased account owner."  Even in that case, though, he's required to take annual distributions, right?  But if he didn't, those are still waived?