My best friend died last week unexpectly at age 49, today I was over to see his widow to discuss what to do next. I'm no expert, but do well with my meager funds, and she trusts me and I don't want to screw this up. I have not called for any info yet, and thought I'd post here first. I have a few questions from our esteemed panel.
1) how long does she have to transfer his 401K in his name to hers
2) will the 401K be taxed? she does not plan a roll over into her IRA
3) will his life insurance settlement be taxed? It's in MI
No will was made but everything like house and cars in both of their names. Some of the other issues, like dealing with his former employer I'm good at since we worked together. She will get a small pension and health insurance for 6 months. And not surprising long lost realtives that happen to work at A G Edwards have come calling. (she's leary)I'm with Vanguard, but his 401K is with Fidelity and she is used to and comfortable there so I leaning toward advising her to stay with them, and keep it simple. Am I covering everything?
Shredder
1) how long does she have to transfer his 401K in his name to hers
2) will the 401K be taxed? she does not plan a roll over into her IRA
3) will his life insurance settlement be taxed? It's in MI
No will was made but everything like house and cars in both of their names. Some of the other issues, like dealing with his former employer I'm good at since we worked together. She will get a small pension and health insurance for 6 months. And not surprising long lost realtives that happen to work at A G Edwards have come calling. (she's leary)I'm with Vanguard, but his 401K is with Fidelity and she is used to and comfortable there so I leaning toward advising her to stay with them, and keep it simple. Am I covering everything?
Shredder