Two IRA accts, no will, deceased age 76, TN resident
In probate, no will. Immediate need to gain control of funding vehicle (declining stocks – imagine that) which is the same for both IRAs (one rollover, one individual). Intend to use these funds to pay estate creditors, attorneys, admin expenses. These funds are the main estate asset. No spouse. Heirs are two adult children. Advice welcome. Thank you.
Permalink Submitted by Alan Spross on Thu, 2008-01-24 23:12
First, the IRA agreement should be checked to determine the default beneficiary, just is case it is NOT the estate, but by elimination, the children. That would eliminate probate of the IRAs, but could result in creditor issues for the estate vrs. the children’s position. TN asset protection law apparently exempts IRA assets fully if paid as death benefits. Therefore, the IRA agreement is really pivotal here.
If the estate is in fact the default beneficiary, not much can be done until the personal rep is determined by the probate court, but a local estate attorney should know how to expedite this process. The IRA custodian is not going to process any transactions until they are comfortable that state legal requirements are in order. Bad timing with respect to market volatility, but the panic may be over by the time action can be taken.