IRA
Client’s wife died and before he could change his beneficiaries to his children he died suddenly.
The custodian told his Executor the assets must be transferred to the deceased spouse’s estate, they could no longer be stretched.
Any comments.
Client’s wife died and before he could change his beneficiaries to his children he died suddenly.
The custodian told his Executor the assets must be transferred to the deceased spouse’s estate, they could no longer be stretched.
Any comments.
Permalink Submitted by Alan - IRA critic on Thu, 2015-01-08 16:42
What was age of client when he passed? The custodian should know what their IRA agreement default beneficiary provisions are, but the agreement should be checked nonetheless. IRA custodians will push to distribute a lump sum out to the estate, but this should be resisted until all the options are known. A small stretch if often better than none at all. If client passed prior to the RBD, the 5 year rule would apply, otherwise the remaining life expectancy of the decedent.
Permalink Submitted by Gerald Summers on Thu, 2015-01-08 19:45
84 yrs old.
Permalink Submitted by [email protected] on Thu, 2015-01-08 17:49
Assuming there was no contingent beneficiary, wouldn’t it go to his own estate (barring custodial agreement) and not the estate of his predeceased wife? Can’t imagine why it would go to her estate… Maybe we are not talking about the right account owner to begin with. I am assuming the OP was asking about the survivor’s own plan, not that of the decedent.
Permalink Submitted by Gerald Summers on Thu, 2015-01-08 19:46
no contingent beneficiary- deceased wifr still list as primary.
Permalink Submitted by Alan - IRA critic on Thu, 2015-01-08 20:18