QUESTION
If an executor is listing as a beneficiary on an IRA account from the deceased, does it have to be deposited into the estate account for distribution?
Asked on Apr 15th, 2014 on Estate Planning - Louisiana
14 ANSWERS
Civil Litigation Attorney serving Ventura, CA
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The Law Office of Robert I. Long
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Did the decedent intend that only the individual designated as beneficiary receive the IRA ("To Mary Smith")? If so, that's who gets it. Or did he/she indicate it was to go to the individual in their representative capacity (e.g., "To Mary Smith, Executor")? If the latter, I think it was intended to be part of the estate and divided.
Answered on Apr 22nd, 2014 at 10:42 AM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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Not if the beneficiary designation is to a specific beneficiary and not as an executor of an estate.
Answered on Apr 16th, 2014 at 6:32 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Depends, was the designation to the individual or to the office of trustee. In other words, if it says "my beneficiary is John," then it does not belong to the estate. If it says "my beneficiary is John, the executor of my estate," then it belongs to the estate.
Answered on Apr 16th, 2014 at 5:41 PM
Edwin K. Niles
No. Assets with a named been go direct to that person.
Answered on Apr 16th, 2014 at 5:40 PM
Probate Attorney serving Newport, OR
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Minor, Bandonis & Haggerty P.C.
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If the personal representative is listed on the IRA account *as such* ("to the personal representative of my estate") then yes, that becomes part of the estate a very bad result for tax reasons. However, the PR is usually a family member, and would be a natural object of the IRA account holder's bounty, so might just be listed as a beneficiary ("to John Jones"). The fact that the named beneficiary happens to be PR doesn't make his IRA distribution a part of the estate.
Answered on Apr 16th, 2014 at 1:20 PM
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It depends is the person listed in that capacity or just by name. If just by name then that person is the beneficiary, if with title, "Executor" then it probably should be paid to the Estate. This information is only intended to give general information in response to an inquiry. It does not establish an attorney client relationship. This response is only based upon the limited facts presented and is merely intended to assist you in determining if you should contact an attorney to provide you with legal advice.
Answered on Apr 16th, 2014 at 10:56 AM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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No. The beneficiary is entitled to the IRA. The only time that would not be the case is if they are mentioned in their representative capacity, (which is VERY rare, in the case of an executor). It is more common in the case of a trust. It would appear that the decedent wanted the executor to receive this asset and not the estate.
Answered on Apr 16th, 2014 at 10:46 AM
Thomas Edward Gates
No, it passes probate due to the beneficiary designation.
Answered on Apr 16th, 2014 at 10:42 AM
Generally, yes. All assets must be included in the estate except those designating a specific beneficiary, payable on death, such as life insurance policies. Check with a local attorney to see if the IRA account can be included as an exception.
Answered on Apr 16th, 2014 at 10:28 AM
2 Awards
No if they are listed as an individual. The institution is the best place to go for answers on how the title is held and what you can do.
Answered on Apr 16th, 2014 at 10:27 AM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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A determination of the intent of the decedent is critical. There is no executor until the decedent dies and an estate representative is appointed. This would indicate the intent was that the individual is the intended beneficiary. If the beneficiary designation states that the beneficiary is the "person, as executor". That indicates an intent that the estate was the beneficiary. If the intent of the decedent is clear by other evidence that could also impact the determination. The question is one for a court decision if there is a belief that the property should be in the estate. Typically, making an IRA beneficiary the estate rather than the spouse or a child will result in a significant income tax payment that is not desirable. If the beneficiary in this instance is not a spouse or child the income tax consequence will be significant and also not desirable. If the executor is the spouse the intent may have been to benefit the individual to avoid the high income tax consequence.
Answered on Apr 16th, 2014 at 8:42 AM
No. The IRA designation controls the distribution outside of probate.
Answered on Apr 16th, 2014 at 8:32 AM
2 Awards
Generally funds received from an IRA are outside of probate and the beneficiary receives those funds directly as they are not probate assets.
Answered on Apr 16th, 2014 at 8:30 AM
Probate Attorney serving New Orleans, LA
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James G. Maguire
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No. It is not part of the estate.
Answered on Apr 16th, 2014 at 8:16 AM