<html>
<head>
<meta http-equiv="Content-Type" content="text/html; charset=iso-8859-1">
<style type="text/css" style="display:none;"> P {margin-top:0;margin-bottom:0;} </style>
</head>
<body dir="ltr">
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
Hi All,</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
Here's my question: </div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
Where <span style="font-family: Calibri, Arial, Helvetica, sans-serif; background-color: rgb(255, 255, 255); display: inline !important">
the Primary Beneficiary of an IRA does not survive the decedent, </span>can the company managing the IRA use defaults to determined the contingent beneficiary or must the IRA revert to an "Inherited IRA in the name of the Estate"?</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
I am working on an estate where the decedent did not properly name contingent beneficiaries to his tax deferred retirement accounts.</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
Decedent left an IRA with just shy of $1M. Primary beneficiary is the testamentary "Marital Trust," established l only if spouse survives him. Spouse did not survive him so the Marital Trust does not exist.</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
There is no Contingent Beneficiary named to receive the IRA. <span style="color: rgb(0, 0, 0); font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt;"> </span></div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<span style="color: rgb(0, 0, 0); font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt;"><br>
</span></div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<span style="color: rgb(0, 0, 0); font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt;">I consulted Natalie Choate's book and determined that the the IRA account should be treated as "No Beneficiary" and default to an Inherited IRA in the name
of the Estate. </span></div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
Today I learned that the custodian of the IRA account has its own internal default rules if Primary Beneficiary is not available to inherit the IRA -- 100% to spouse or 100% divided among then-living children if spouse is not alive. This is not in line with
the inheritance scheme of decedent's estate. Is there a legal basis for such a policy? </div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<span style="font-family: Calibri, Arial, Helvetica, sans-serif; background-color: rgb(255, 255, 255); display: inline !important">(The after the Marital Trust, the will establishes a "Family Trust" to manage tax deferred retirement funds, RMDs to be split
5 ways. I infer the intent of the Family Trust was to prevent decedent's only child from immediately cashing out an Inherited IRA.)</span><br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<span style="font-family: Calibri, Arial, Helvetica, sans-serif; background-color: rgb(255, 255, 255); display: inline !important"><br>
</span></div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
-Michael</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div style="font-family: Calibri, Arial, Helvetica, sans-serif; font-size: 12pt; color: rgb(0, 0, 0);">
<br>
</div>
<div id="Signature">
<div id="divtagdefaultwrapper" style="font-size:12pt; color:#000000; background-color:#FFFFFF; font-family:Calibri,Arial,Helvetica,sans-serif">
<p style="margin-top: 0px; margin-bottom: 0px;"><span style="font-size:10pt">Michael Geoghegan<br style="">
Northwest Strategy and Planning, PLLC<br style="">
t: 206.353.5592<br style="">
e: michael@nwstrategyandplanning.com</span></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><span style="font-size:10pt">w: <a href="http://nwstrategyandplanning.com">
<span style="color:rgb(0,111,201)">nwstrategyandplanning.com</span></a> | <span style="font-size:10pt">
<a title="Cmd+Click or tap to follow the link" href="https://www.linkedin.com/in/michael-geoghegan-5893407"><span style="color:rgb(0,111,201)">LinkedIN</span></a></span><br>
</span></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><span style="font-size:10pt">Scheduling: <a href="https://northwest-strategy-and-planning-pllc.appointlet.com" class="OWAAutoLink"><span style="color:rgb(0,111,201)">https://northwest-strategy-and-planning-pllc.appointlet.com</span></a></span></p>
<p style="margin-top: 0px; margin-bottom: 0px;"><span style="font-size:10pt"></span><br>
</p>
<p style="margin-top: 0px; margin-bottom: 0px;"><img class="EmojiInsert" alt="1455905947881_NWStrategyPlanningLogo_email.png" data-outlook-trace="F:1|T:1" src="cid:cf2632d3-75d5-4cf4-a387-cf2486d35daf"><br>
</p>
</div>
</div>
</body>
</html>