QUESTION
Who gets my brother's 401k without a Beneficiary?
Asked on May 10th, 2013 on Estate Planning - Michigan
More details to this question:
My brother died leaving no will and no beneficiary on his 401k that was set up over 20 years ago with his company. Originally, when the 401k was set up, he named a beneficiary, then in later years removed this beneficiary from the 401k. He did not name a new beneficiary on the 401k. Instead of allowing the 401k to go into probate, the original beneficiary stepped in and requested the 401K payout and the company gave it to this person instead of sending it to probate. The company said it doesn't like to give 401ks to probate court. The state is Michigan. Should we contest this payout?
3 ANSWERS
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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You may want to. It does depend on the relationship of the person who they gave it to. Would that person have been the heir, if it HAD gone through probate? If so, then there is no reason to challenge. If the probate distribution would have been different, I would at least have an attorney review this.
Answered on May 14th, 2013 at 6:10 AM
Municipal Law Attorney serving Paw Paw, MI
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Mark A. Manning, P.C.
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The transfer could be contested. The 401k is an asset of the estate and should have been paid pursuant to the Probate Code.
Answered on May 14th, 2013 at 5:20 AM
Domestic Relations Attorney serving Milford, MI
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Gabel, Gudmundsen & Gabel, P.C.
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If this beneficiary was removed, the 401k company shouldn't have released the funds to that person. Are you sure about your information? If there is proof that the beneficiary had been removed, then you should open a probate estate and contest the pay-out. Of course, all of this costs money, so consider how much money is involved and decide whether it is worth contesting.
Answered on May 14th, 2013 at 5:09 AM