[WSBAPT] IRA devolution issue

[Lewis, Amy C.]

Robert,

              You will need to review the account agreement for her IRA to see if it addresses this situation.  My initial reaction is that because the husband survived the wife, her IRA is part of his estate even if he failed to claim it while he was alive.  I don’t believe her secondary beneficiary is applicable to this analysis because her husband survived her.  His IRA beneficiary won’t apply because he did not roll her IRA into his IRA prior to his death.  It seems likely that her IRA will be payable to the husband’s estate because he did not designate a beneficiary for the wife’s IRA after she died, unless the account agreement indicates otherwise.  There may also be penalties owed if he did not take RMDs after his wife died.  You will probably need a good CPA to help sort that out.

              If you need more assistance with this, my partner Hayden Taylor, whose practice combines ERISA and estate planning, may be able to help you dig into this further.  He will be out of the office for a couple of days, but will be back next week.


Amy Lewis, Attorney
Pronouns she/her/hers
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909 A Street, Suite 600 | Tacoma, WA 98402
phone 253.572.4500 | fax 253.272.5732 | www.eisenhowerlaw.com<http://www.eisenhowerlaw.com/>
From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Robert R. Cole
Sent: Tuesday, July 30, 2024 12:27 PM
To: wsbapt at lists.wsbarppt.com
Subject: [WSBAPT] IRA devolution issue


Wife had a traditional IRA.  She died.  Her beneficiary was her husband.  He did nothing with or about it.  Three years later he died. Both intestate.   PR found out talking with brokerage firm that she had listed only one child as a secondary beneficiary.  Husband's IRA had both children as beneficiaries.  So, the obvious question is, does left out child have a legal right to half the IRA?  Thanks for your collective wisdom.
--




Very Truly Yours,
Robert R. Cole
Law Office of Cole & Gilday, P.C.

10101 - 270th St. NW
Stanwood, WA 98292
(360) 629-2900 (Telephone)
(360) 629-0220 (Fax)

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