[WSBAPT] IRA with "Estate" beneficiary, and RCW 11.62 small estate affidavit
Andrekita Silva
ak at seattle-silvalaw.com
Thu Mar 7 14:35:08 PST 2019
Eric
I had a similar situation this past summer. I had a small estate and
one of the asset holders of some stock options insisted on an EIN and
insisted that the asset needed to be distributed to the estate, not
the beneficiary.
After a few rounds of communication, explaining the whole purpose for
the small affidavit procedure being to avoid the cost of probate),
etc. and getting nowhere, I filed the small estate affidavit with the
court.
I sent the conformed copy of the affidavit (with its cause number and
date stamp received by courthouse) to the asset holder with a copy of
the statute and again, explained the purpose of the statute. I do not
ordinarily file the small estate affidavit with the court. But, in
this case, it seemed to do the trick. The asset holder had many
different versions of forms and finally came up with the one that
addressed our situation.
So, if you haven’t filed the affidavit and gotten a cause number, try that.
andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com
Quoting Eric Nelsen <Eric at sayrelawoffices.com>:
> No, not based on the information I have from the custodian. It's
> pretty clear that they want to (A) transfer the decedent's IRA
> investments into an "Estate IRA" with an EIN tied to the Estate, and
> then (B) let the PR direct them how to distribute the new Estate
> IRA. They don't want to collapse the steps and allow direct transfer
> to the three heirs.
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> Sincerely,
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> Eric
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> Eric C. Nelsen
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> SAYRE LAW OFFICES, PLLC
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> 1417 31st Ave South
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> Seattle WA 98144-3909
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> phone 206-625-0092
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> fax 206-625-9040
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> FROM: wsbapt-bounces at lists.wsbarppt.com
> [mailto:wsbapt-bounces at lists.wsbarppt.com] ON BEHALF OF Jane Bitz
> SENT: Thursday, March 07, 2019 11:29 AM
> TO: WSBA Probate & Trust Listserv
> SUBJECT: Re: [WSBAPT] IRA with "Estate" beneficiary, and RCW 11.62
> small estate affidavit
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> Eric:
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> Will the IRA custodian consider distributing directly to the
> three beneficiaries of the “estate” with the proper documentation,
> essentially each heir claiming their 1/3 using the lack of probate
> affidavit?
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> Jane Bitz.
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> Jane G Bitz
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> Of Counsel
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> Wolff, Hislop & Crockett, PLLC
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> 12209 E Mission, Suite 5
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> Spokane Valley WA 99206-4824
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> (509) 927-9700; FAX (509) 777-1800
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> jbitz at whc-attorneys.com[1]
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> FROM: wsbapt-bounces at lists.wsbarppt.com[2]
> <wsbapt-bounces at lists.wsbarppt.com> ON BEHALF OF Eric Nelsen
> SENT: Thursday, March 7, 2019 11:04 AM
> TO: WSBA Probate & Trust Listserv (wsbapt at lists.wsbarppt.com)
> <wsbapt at lists.wsbarppt.com>
> SUBJECT: [WSBAPT] IRA with "Estate" beneficiary, and RCW 11.62 small
> estate affidavit
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> I didn't think this was a first for me, but maybe it is--
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> Decedent had a small IRA that had the default "estate"
> beneficiary. Total value less than $30,000.
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> Submitted a small estate affidavit directing distribution to my
> client, for my client's account and also as agent for the other two
> heirs. Obviously my client isn't the PR of the Estate, but just a
> "successor" entitled to submit the affidavit, and also agent for the
> other heirs per their authorizations.
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> Custodian of the IRA refuses to distribute, because the "Estate"
> is the beneficiary, and therefore there must be a PR appointed who
> can receive the money on behalf of the "Estate."
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> Is there no way around starting a probate in this scenario? I am
> thinking my client is stuck with starting a probate.
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> Sincerely,
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> Eric
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> Eric C. Nelsen
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> SAYRE LAW OFFICES, PLLC
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>
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> 1417 31st Ave South
>
>
>
> Seattle WA 98144-3909
>
>
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> phone 206-625-0092
>
>
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> fax 206-625-9040
>
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>
Links:
------
[1] mailto:jane at jbitzlaw.com
[2] mailto:wsbapt-bounces at lists.wsbarppt.com
andrekita
Law Office of F. Andrekita Silva
1325 Fourth Avenue, Suite 2000
Seattle, Washington 98101
206-224-8288
www.seattle-silvalaw.com
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