Designated Beneficiary signed before death –
I have a client that signed in front of me a new beneficiary form. The client passed away the new beneficiary form had not been received by the company holding the IRA. The investment company says they will not accept the beneficiary form signed prior to her death in my office as a witness. Is this possible? Is there anyway around it?
Permalink Submitted by Alan Spross on Tue, 2009-01-13 20:42
Tim,
Check the IRA agreement beneficiary clause. Most agreements state that a change is only effective when they have received the document in the IRA owner’s lifetime, and if this agreement states that, there is nothing that can be done.
That said, if you have proof of mailing more than 4 business days prior to the client’s death, there may be reason to contest the decision based on the fact that they should have received and accepted the form before the time of death.
There may be other options to pursue if the original beneficiary is agreeable to the change. Such things as disclaimers or gifting may be viable depending on the situation.