Join Early Retirement Today
Reply
 
Thread Tools Display Modes
IRA beneficiary subject to probate ruling?
Old 05-12-2011, 10:53 AM   #1
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,584
IRA beneficiary subject to probate ruling?

Someone recently passed away. She left IRAs with the beneficiaries clearly identified, but the account is with a “financial advisor” at a national back. The executor sent him death certificates and has requested he establish IRA beneficiary accounts but the FA refuses to act until he receives probate court formal designation of the executor as such. Is this necessary or typical (in Illinois)? For a taxable account, of course, but I assumed that an IRA custodian only needed the death and beneficiary paperwork to process the IRAs.

In advance, I appreciate responses and insights.
MichaelB is online now   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 05-12-2011, 02:27 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Mar 2009
Location: Pittsburgh, PA suburbs
Posts: 1,796
Speaking from my own experience as an executrix, I was required to get a document called a letter testamentary issued by the register of wills at my courthouse in addition to a death certificate to transact business at most financial institutions. It attested to the fact that I was indeed the authorized executrix.
I found the big bank I dealt with to be the worst in terms of delay and continued requests for more documentation as their centralized legal department had to rule on every request to do anything at all. I still use this bank but I swear I will have only about 36 cents left in my account (by design) when I exit this life.
I have transfer on death on all of my non-qualified accounts and also a named beneficiary (and contingent beneficiaries) on all of my qualified accounts.
WhoDaresWins is offline   Reply With Quote
Old 05-12-2011, 04:01 PM   #3
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: May 2005
Posts: 17,203
Two possiblities...


He did not send letters of testimentary to the bank... a death certificate by itself is not enough since he is making the request to transfer... who knows for sure that HE is the right person to make the request....


The second is that the beneficiarys are not identified at the bank... you did not say if there was a designation made are the IRA account level or if it is in the will... again, if the bank does not have any paperwork, then they want all relevent documents to procede... that includes court papers..


Now, if the beneficiaries were on the form that the bank provided and the bank had it in their possession prior to death... I would say that the beneficiaries could contact the bank and just show the death certificate and be done with it.... no need to involve the executor... or the court...
Texas Proud is offline   Reply With Quote
Old 05-12-2011, 07:05 PM   #4
Full time employment: Posting here.
 
Join Date: Apr 2008
Posts: 702
My mother just passed away and she had put much in a trust, but not everything. My sister was the Co-trustee, however, I am the personal representative. So my sister is taking care of the things in the trust and I will have to take care of all other things.

She contacted the bank and they would not even speak with her until she told them that the beneficiaries were listed on the account. The told her that they would send forms to fill out. This was over a month ago and we have yet to receive them. They are requiring a death certificate so far but nothing else. We will see.
FreeAtLast is offline   Reply With Quote
Old 05-13-2011, 05:30 AM   #5
Administrator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,584
Thanks for the responses. The beneficiaries are clearly identified on each IRA account. I'm going to prepare a letter each can send directly to the bank so the accounts can be opened without further delay. We'll see what happens.
MichaelB is online now   Reply With Quote
Old 05-13-2011, 07:31 AM   #6
Thinks s/he gets paid by the post
grumpy's Avatar
 
Join Date: Jul 2004
Posts: 1,321
When DW's dad passed away last year, she was given a dozen certified copies of a "short certificate" issued by the probate court at the time the will was filed. This certificate showed that she was appointed as executrix. The two mutual fund companies where dad's IRA's were held required that the short certificates be provided along with the forms to create the beneficiary IRA accounts.
__________________
...you can check out any time you like, but you can never leave...
grumpy is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Probate ronin Other topics 13 10-07-2009 11:33 AM
Roth IRA Beneficiary question summer2007 FIRE and Money 11 04-18-2009 06:45 PM
Interesting Ruling (on retiree health benefits) yesterday. dumpster56 Health and Early Retirement 13 12-29-2007 08:44 AM
Texas Probate twaddle FIRE and Money 18 07-22-2007 06:58 PM
IRA early W/D- Private-letter ruling mickeyd FIRE and Money 3 08-24-2004 11:44 AM

» Quick Links

 
All times are GMT -6. The time now is 10:34 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.