Ability to disclaim IRA death proceeds when no benef
Young single adult is killed in Nevada in Nov of 2007. Has an IRA but did not complete beneficiary designation. No will. Parents and siblings live in Michigan.
Father – who is settling estate- would like to disclaim proceeds to other children.
Can estate name beneficiaries post death?
Permalink Submitted by Alan Spross on Fri, 2008-05-16 23:45
It is vital to determine what the IRA agreement indicates with respect to a default beneficiary. Since he was single, it is quite likely to be the estate, but this should be verified and not assumed. Since the father has been named personal representative, the state of residence of the decedent must have been determined.
The father cannot disclaim as executor, but could disclaim as a beneficiary his own interest when the intestacy provisions arrived at the parents position in the proper order. At that time, he could disclaim if he was satisfied with the next in line under the state intestacy provision. He cannot change the order of those provisions.
Disclaimers must be filed within 9 months of death. Note that there is no possibility of stretching the IRA, since the 5 year rule applies to estate beneficiaries if the IRA owner passed prior to his RBD.