Outstanding checks for deceased holder
An IRA owner passed away in June 2013. He was over 70 1/2 and having checks automatically disbursed from the IRA plan on a monthly basis. We have two checks outstanding from April and May 2013. We have received notification that the beneficiaries and the personal rep of the estate are disputing who should have access to negotiate these checks. Since these checks were disbursed prior to death should we reissue the checks to the estate, or are they technically the beneficiaries funds?
Permalink Submitted by Alan - IRA critic on Wed, 2014-02-26 20:09
The checks were issued before the IRA owner passed and therefore he had constructive receipt. They are assets of his estate and his executor should be able to deposit them to the estate account. They also would be applied against the owner’s 2013 RMD and included in his 1099R.