Beneficiary Question
Hello, I have a client with a traditional IRA and 2 beneficiaries. My client passed away on 06/01/2019 and one of the beneficiaries passed on 05/20/19. The beneficiary elected to have per stripes on their portion. Would the beneficiaries portion that passed go to the per stripes instructions or would the portion go to the remaining beneficiary? I’m getting conflicting information from my back office. Thank you.
Permalink Submitted by Alan - IRA critic on Thu, 2019-06-13 16:37
If the beneficiary that pre deceased the client was shown on the IRA beneficiary clause with the “per stirpes” designation, this beneficiary’s share of the IRA will go to their heirs. Had the beneficiary not been listed per stirpes that shares would ordinarily go to the other primary beneficiary. Always review the beneficiary clause in the specific IRA.