Effect of no new beneficiary designation when IRA changed to
Man dies with no will, so half to son and half to wife in California. Man bought and contributed one time many years ago to IRA, designated son as beneficiary, and never di another thing re the IRA.
The IRA changed owners/administrators/account managers several times and now is handled by and through a new business entity.
Does the estate (i.e. the surviving spouse) have an argument that she is entitled to one half of the benefits, either because the various changes should have included a new beneficiary designation, or otherwise???
Thanks for any suggestions or help
Permalink Submitted by Clyde Wolf on Thu, 2008-09-18 00:28
Rpiantadosi,
Terminology, the deceased was the IRA owner until his death.
There may have been several changes in custodians, trustees, or companies that administered the IRA. The important thing now is, who does the current IRA custodian/trustee say is the beneficiary, and why.
We should all review our IRA/401k/403b plan beneficiary designations from time to time.
Permalink Submitted by Jose Morales on Thu, 2008-09-18 15:36
As cwolf stated, the first thing to clear up is who the beneficiary on file with the current IRA custodian is. Regardless of who is named the beneficiary state law can have an effect on who the rightful beneficiary is, especially in a comunity property state.