[WSBAPT] IRA without Beneficiary Designation

[John J. Sullivan, Esq.]

The worst default I’ve come across is one that didn’t designate the estate, but rather the “intestate heirs” of the decedent. That can be a show-stopper where the decedent was alienated from those heirs for decades. 

 

John J. Sullivan

 

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Paul Neumiller
Sent: Saturday, October 31, 2020 10:01 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] IRA without Beneficiary Designation

 

So, I have the same problem except the account holder is deceased.  I am working with decedent's father and we are going to try an Affidavit of Small Estate (only asset of this estate is this $30k account).  But we are being told by the bank that because the decedent didn't make a beneficiary designation, we must provide the bank with Letters.  If the account holder is deceased, how do I get the bank to release the custodial agreement to the father so we could check the default clause?

 

  _____  

From: wsbapt-bounces at lists.wsbarppt.com <mailto:wsbapt-bounces at lists.wsbarppt.com>  <wsbapt-bounces at lists.wsbarppt.com> on behalf of Philip N. Jones <pjones at duffykekel.com <mailto:pjones at duffykekel.com> >
Sent: Saturday, October 31, 2020 8:06 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com <mailto:wsbapt at lists.wsbarppt.com> >
Subject: Re: [WSBAPT] IRA without Beneficiary Designation 

 

The financial advisor is correct, in most cases. If the account lacks a beneficiary designation, the default clause of the custodial agreement kicks in, and it usually provides that lacking a beneficiary designation, the account goes to (depending on the agreement) the spouse, or the children, or the estate.  Every agreement is different.  Ask for a copy of your client’s custodial agreement, then study the default clause carefully.  If the default beneficiary is the estate, then the IRA becomes a probate asset.  This is not a question of looking for a statute.  It is a question of reading custodial agreement. 

Phil Jones

Portland OR

Philip N. Jones 

Duffy Kekel LLP

Portland, OR

pjones at duffykekel.com <mailto:pjones at duffykekel.com> 

(503) 853-1482 cell





On Oct 31, 2020, at 7:15 AM, Brent Williams-Ruth <brent at williams-ruthlaw.com <mailto:brent at williams-ruthlaw.com> > wrote:

 

Greetings List - 

 

I have a prospective client who has an estate less than $100,000 - unless you count a substantial IRA. However, the IRA does not have any beneficiary designations assigned. 

 

The client called me after talking with their financial advisor who told them that IRA's are not probate assets - EVEN without a beneficiary designation. 

 

I am unaware of any statute or regulation that provides for this.  Anyone able to assist with a citation?

Brent Williams-Ruth  (preferred pronoun: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

Office/Scheduling Phone: (425) 830-5134

Direct Mobile: (206) 889-7919

e-mail <mailto:Brent at Williams-RuthLaw.com>  / website <http://www.Williams-RuthLaw.com/>  /  <http://www.facebook.com/bwrconsults> facebook / 

As of July 1, 2019 - I began operating as the Law Offices of Brent Williams-Ruth a division of BWR Consulting, PLLC. Please note the new points of contact Brent at Williams-RuthLaw.com <mailto:Brent at Williams-RuthLaw.com>  and www.Williams-RuthLaw.com <http://www.Williams-RuthLaw.com>  

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