Stretch IRA with Per Stirpes designation
Would the following designation be considered a designated beneficiary and qualify for the stretch?
“To my descendants who survive me, per stirpes”
Thanks!
Would the following designation be considered a designated beneficiary and qualify for the stretch?
“To my descendants who survive me, per stirpes”
Thanks!
Permalink Submitted by Alan Spross on Mon, 2008-08-25 19:48
Yes, but note that a per stirpes designation may result in the IRA custodian requiring an estate administrator to take responsibility for proper identification of all the beneficiaries. This process could vary by state.
Permalink Submitted by Bruce Steiner on Mon, 2008-08-25 22:05
That’s no big deal. The executor, administrator or personal representative of the decedent’s estate has to know who the IRA owner’s children are (and if any of them is deceased, who the deceased child’s children are).
Permalink Submitted by Alan Spross on Tue, 2008-08-26 01:59
Bruce,
If there is no probate estate needed in NY, does the Surrogates Court get involved when an administrator is appointed solely to satisfy the IRA custodian’s requirements for identifying the per stirpes beneficiaries?
Permalink Submitted by Bruce Steiner on Tue, 2008-08-26 22:48
It’s unusual that someone who has an IRA has no assets in his/her own name. But you can still probate the Will and get an executor appointed even if there are no probate assets. That could happen if, for example, (i) the decedent was a party to a lawsuit and an executor has to be substituted as the party, (ii) the decedent was a trustee of another trust and the executor has to account under that trust, (iii) the decedent was a beneficiary of a trust and the executor has to provide a receipt and release, (iv) you want to make it clear who has authority to deal with the IRS, or (v) the decedent held a power of appointment over a trust created under a trust agreement or under someone else’s Will and you need to establish whether he/she exercised the power of appointment.
Probating a Will is generally fairly simple and routine.
Permalink Submitted by Anonymous (not verified) on Fri, 2008-08-29 17:09
Thanks!