401K with no beneficary listed
Does a 401k with no beneficiary listed become part of the estate when the sole owner dies ? Does it go automatically to the spouse ? Is the law uniform in all states of the US ? If the 401K proceeds become part of the estate, can creditors seek payment from it ?
Permalink Submitted by Alan - IRA critic on Mon, 2013-10-21 20:32
If married at least one year at the time of plan owner’s death, the surviving spouse is the beneficiary in all states under ERISA, and this also holds for many plans if not married for at least a year. Regardless of the beneficiary, the value of the plan at death is included in the gross estate of the decedent, although there is an unlimited marital deduction if the surviving spouse inherits the plan. The 401k is also creditor protected under ERISA as long as the funds remain in the 401k.