Beneficiary Question

Submitted by Robert Wright on Fri, 2012-05-18 20:02

I have an IRA with the following beneficiaries:

Primary: 50% Special Needs Trust. Trust can disclaim. Daughter of IRA owner is beneficiary of special needs trust.
50% Son of IRA owner

Contingent: none

My question is: If the beneficiary of the special needs trust [the daughter] predeceases the IRA owner and the trust disclaims, does the 50% share designated for the trust pass to remaining primary beneficiary [the son] or would the trust’s share pass to a contingent beneficiary – unnamed at this point – if it disclaims?

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Permalink Submitted by Jan Haven on Fri, 2012-05-18 20:23

It should go to the son since there are no contingent beneficiaryies assigned. Even at a later date if a contingent is added, the primary beneficiary precedes any contingent.