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<p class="MsoNormal"><span style="color:black">Phil, the 3<sup>rd</sup> default was probably children - that’s the three I see.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="color:black">--------<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:black">Terry J. Tassin, Jr.</span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Scarborough McNeese Oelke & Kilkenny, P.C.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Five Centerpointe Drive, Suite 240<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black"><a href="x-apple-data-detectors://1/0">Lake Oswego, Oregon 97035-8682</a></span><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Phone: <a href="tel:503.601.3698">503.601.3698</a><o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:black">Fax: <a href="tel:503.601.3699">503.601.3699</a><br>
<i><a href="mailto:tjt@smoklaw.com">tjt@smoklaw.com</a></i><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:black"> </span></b><span style="color:black"><o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="color:black">The information transmitted in this e-mail message and attachments, if any, may be attorney-client information, including privileged or confidential material, and is intended only for the use of the individual
or entity named above. Distribution to, or review by, unauthorized persons is prohibited. If you have received this transmission in error, please immediately notify the sender and permanently delete this transmission including attachments, if any.</span></b><span style="color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif"">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif""> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Philip N. Jones<br>
<b>Sent:</b> Monday, November 04, 2019 10:25 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv<br>
<b>Subject:</b> Re: [WSBAPT] Default Beneficiary of IRA<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="color:#1F497D">To elaborate on Diane’s post, I suggest you ask for a copy of the custodial agreement or the plan, whichever one has the default clause. It will explain the default beneficiary. Don’t look for a set of internal
rules or an internal policy; look to the contract.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">I saw a study once that contacted a variety of IRA custodians. The default clauses varied from custodian to custodian. Some went to spouse. Some went to estate. Some went to a third place that I cannot remember.
But I do recall that the contracts were somewhat evenly divided 33/33/33 among the three different destinations. Call your custodian.
<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Phil Jones<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D">Portland, OR<o:p></o:p></span></p>
<p class="MsoNormal"><span style="color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal"><b>From:</b> wsbapt-bounces@lists.wsbarppt.com <wsbapt-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Diane J. Kiepe<br>
<b>Sent:</b> Monday, November 04, 2019 9:15 AM<br>
<b>To:</b> WSBA Probate & Trust Listserv <wsbapt@lists.wsbarppt.com><br>
<b>Subject:</b> Re: [WSBAPT] Default Beneficiary of IRA<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Michael,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Yes – an IRA is a contract and the default beneficiaries of the plan typically govern. The no beneficiary is if there is truly “no beneficiary”. Here is this – it is by contract.<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal">Best,<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold"">Diane J. Kiepe<o:p></o:p></span></i></p>
<p class="MsoNormal"><i><span style="font-family:"Script MT Bold""><o:p> </o:p></span></i></p>
<p class="MsoNormal">Diane J. Kiepe<o:p></o:p></p>
<p class="MsoNormal">Douglas Eden<o:p></o:p></p>
<p class="MsoNormal">717 W. Sprague Ave.<o:p></o:p></p>
<p class="MsoNormal">Suite 1500<o:p></o:p></p>
<p class="MsoNormal">Spokane, WA 99201<o:p></o:p></p>
<p class="MsoNormal"><a href="mailto:djkiepe@depdslaw.com"><span style="color:#0563C1">djkiepe@depdslaw.com</span></a><o:p></o:p></p>
<p class="MsoNormal">509-455-5300<o:p></o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><b>From:</b> <a href="mailto:wsbapt-bounces@lists.wsbarppt.com">
wsbapt-bounces@lists.wsbarppt.com</a> <<a href="mailto:wsbapt-bounces@lists.wsbarppt.com">wsbapt-bounces@lists.wsbarppt.com</a>>
<b>On Behalf Of </b>Michael Geoghegan<br>
<b>Sent:</b> Monday, November 4, 2019 8:48 AM<br>
<b>To:</b> <a href="mailto:wsbapt@lists.wsbarppt.com">wsbapt@lists.wsbarppt.com</a><br>
<b>Subject:</b> [WSBAPT] Default Beneficiary of IRA<o:p></o:p></p>
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<p class="MsoNormal"><o:p> </o:p></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Hi All,<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Here's my question: <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">Where <span style="background:white">
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"?<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">I am working on an estate where the decedent did not properly name contingent beneficiaries to his tax deferred retirement accounts.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">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.<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">There is no Contingent Beneficiary named to receive the IRA. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">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. <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">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? <o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black;background:white">(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><span style="font-size:12.0pt;color:black"><o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black">-Michael<o:p></o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p class="MsoNormal"><span style="font-size:12.0pt;color:black"><o:p> </o:p></span></p>
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<p style="background:white"><span style="font-size:10.0pt;color:black">Michael Geoghegan<br>
Northwest Strategy and Planning, PLLC<br>
t: 206.353.5592<br>
e: <a href="mailto:michael@nwstrategyandplanning.com">michael@nwstrategyandplanning.com</a></span><span style="color:black"><o:p></o:p></span></p>
<p style="background:white"><span style="font-size:10.0pt;color:black">w: <a href="http://nwstrategyandplanning.com">
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<span style="color:#006FC9">LinkedIN</span></a></span><span style="color:black"><o:p></o:p></span></p>
<p style="background:white"><span style="font-size:10.0pt;color:black">Scheduling: <a href="https://northwest-strategy-and-planning-pllc.appointlet.com"><span style="color:#006FC9">https://northwest-strategy-and-planning-pllc.appointlet.com</span></a></span><span style="color:black"><o:p></o:p></span></p>
<p style="background:white"><span style="color:black"><o:p> </o:p></span></p>
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