Who owns the Bene IRA if no Beneficiary was named?

Submitted by Amanda Minter on Wed, 2020-05-13 18:11

Situation – Wife dies and the husband was the beneficiary of her IRA. He dies before he opens the Bene IRA so no new beneficiary on record of this IRA. He does have a will and his children are named beneficiaries of his estate in the will.

We are being told there needs to be a Beneficiary IRA set up with the Estate of the Husband as the owner? then does this Bene IRA pay to the named beneficiaries in the will?



Submitted by Alan - IRA critic on Wed, 2020-05-13 18:21

Yes, husband’s estate will inherit the IRA. Certs of death for both wife and husband will need to be submitted plus other info including the estate TIN. The estate executor can then assign the IRA out of the estate as inherited IRA accounts for each will beneficiary. The children’s RMD requirements depend on several variables affected by the ages of each spouse at death and the date of each death. 

Submitted by Bruce Steiner on Mon, 2020-05-18 21:22

  • If the wife died in 2019, the husband’s executors may want to disclaim the IRA if the children are the contingent beneficiaries, either under the beneficiary designation or under the default provisions of the IRA agreement.  That will allow the children to take advantage of the stretch.
  • The husband’s executors would have to disclaim within 9 months from the wife’s death.  In some states, they would need court approval.
  • We’ve done this where the surviving spouse died shortly after the IRA owner’s death.
  • Bruce Steiner

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