Depositing Check to IRA After Death
We have a client who passed away on 10/19/2022. Before his passing we were working with an annuity company to process a death claim for his wife’s IRA. His wife passed away in July of 2022 and we were requesting a spousal transfer. We submitted the death claim paperwork to this company on 08/11/2022 but the check for the spousal transfer was was not issued until 10/21/2022 (2 days after our clients death). Are we able to deposit this check to our client’s IRA after death?
Permalink Submitted by Alan - IRA critic on Thu, 2022-11-03 16:44
If the check had been issued prior to client’s death, there have been numerous PLRs allowing his executor to complete the rollover. However, since the check was dated post death (possibly due to insurance company processing delays), the check should be returned with a copy of the death certificate, and the distribution re deposited into the inherited IRA. The executor of client’s estate which is now the beneficiary of wife’s IRA can then determine whether the beneficiary on his IRA is different than that shown under his will. If they differ, there obviously could be issues. Had this check been dated prior to client’s death, this would have been much easier. Post death checks have no consistent IRS treatment with respect to issued PLRs, but hopefully the insurance company has firm procedures for cases such as this, and will accept the check back.