QUESTION
If I’m the beneficiary on my mother’s 401k do I have to split it with my siblings?
Asked on Oct 23rd, 2012 on Estate Planning - Michigan
More details to this question:
My mother’s will is split three ways between my siblings in Michigan. However, I'm the only one listed on her 401k. Do I have to eventually share this money with them? Is this part of her estate?
7 ANSWERS
If you are the sole beneficiary you should get it all.
Answered on Jun 26th, 2013 at 10:21 PM
Federal Taxation Attorney serving Livonia, MI
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Gold & Associates PC
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The 401 (k) would be presumed yours and not part of a probate estate.
Answered on Jun 26th, 2013 at 10:21 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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Not generally, the 401k passes outside of the estate.
Answered on Oct 26th, 2012 at 10:45 PM
Elder Law Attorney serving Auburn Hills, MI
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Byers & Goulding, P.L.C.
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No you do not have to share the 401(k) with them. So long as there is a beneficiary designated on the 401(k), it passes to the designated beneficiary and it is not controlled by the will.
Answered on Oct 25th, 2012 at 4:59 PM
Bankruptcy Attorney serving Alpena, MI
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Carl C. Silver Attorney at Law
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The 401k proceeds will go direct to you. They will not be part of your mother's estate. You do not need to share it with your siblings.
Answered on Oct 25th, 2012 at 4:59 PM
Real Property Attorney serving Utica, MI
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Douglas A. Tull, P.C. Attorney at Law
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No. if you are the sole beneficiary you are the legal owner if you are the survivor - you will have to pay any taxes that are due on the IRA funds - unless you elect to "stretch" the IRA for your lifetime (if you qualify) or for a period of years (5). The Will only operates on assets that pass through Probate. An IRA with a named beneficiary, does not pass through probate, so the provisions of the Will do not affect the beneficiary's rights.
Answered on Oct 24th, 2012 at 8:24 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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This is not part of your mother's estate and you have no legal obligation to share the funds. Whether or not you have a moral obligation to divide the funds depends on why you were named on the account. If it was your mother's intent that it go to you for some reason, then the money would be yours. If it was just done for convenience sake, then you probably should share. If you do not, it will likely have an effect on your ongoing relationships with your siblings.
Answered on Oct 24th, 2012 at 8:22 PM