• FreeAdvice has a new Terms of Service and Privacy Policy, effective May 25, 2018.
    By continuing to use this site, you are consenting to our Terms of Service and use of cookies.

Beneficiaries

Accident - Bankruptcy - Criminal Law / DUI - Business - Consumer - Employment - Family - Immigration - Real Estate - Tax - Traffic - Wills   Please click a topic or scroll down for more.

Chucklehead

Junior Member
What is the name of your state? California

I notified the benefits provider of my friend's death; they researched and then advised they would release money to an estate. But there were beneficiaries for these accounts on file; I submitted his paperwork showing this. They advised they are not accepting what I submitted but will not provide in writing this determination.

Must these monies have to go through probate when there is beneficiary information on file? Also, some other information stated to me in different phone conversations has been contradictory. Are they allowed to provide information verbally only or can I insist everything be done in writing?
 


Betty

Senior Member
What kind of accts. are these with beneficiaries? Why did you & not the beneficiaries submit paperwork for the proceeds? Who are the bene's - do you happen to be a bene? Are you positive your friend didn't change the bene's to his estate?
 
Last edited:

Dandy Don

Senior Member
They are not obligated to tell you anything since you have no legal authority for this information unless you are the executor/personal representative of the friend's estate. Is there a will being probated?

It was great that you provided the information but it is possible that the decedent could have submitted a form to change the designation so that the previous beneficiaries would no longer be receiving the funds, although that does sound a bit unlikely.

You should be notifying the beneficiaries that they should be getting in touch first with the executor of the estate (if there is an executor) so that the executor can contact the company to find out exactly what is going on.

DANDY DON IN OKLAHOMA ([email protected])
 

Chucklehead

Junior Member
Thank you. I am a beneficiary (with one other) on all accounts and also nominated as executor. I did not file for probate because all accounts had beneficiaries. Beneficiaries were not changed, but his company changed ownership and this is new benefits place, first saying they can't accept what I submitted, then saying I AM eligible for pension benefits (accounts are 401k, life insurance and pension; again, I am listed on all). I returned completed paperwork they provided for pension eligibility but they have not sent followup paperwork as advised and want me to call. Because they first said I was, then wasn't, then was, I want our communication to be in writing.

Also, there would be no need to file for probate if they honored paperwork; it feels like a catch-22 situation. Do I need to file so they will provide info, even if it shouldn't be going to estate? Further complicating matters is his IRA account - with another company, also with me as a beneficiary - was supposed to be changed to a trust account before he died, and his financial planner did not do this. A will was made for this trust account only (since all other accounts had beneficiaries), for me as trustor (also conservator) to pay bills, grocery shop, death-related expenses, etc., (friend died shortly after), and a third beneficiary would get a portion from the estate. So none of that happened. But now if the 401k and life insurance were to go to the estate rather than the named beneficiaries, the third beneficiary, who was only supposed to inherit from the one IRA account, would then get a portion of these larger accounts, and that was not my friend's wishes. And, because of all these problems and delays, I have not received any money to pay the court fees, etc.

What is my next step?
 

tecate

Member
A preliminary suggestion. Please use separate paragraphs for each different account. When you mix everything together it is hard to follow. (At least for me.)

I agree with you; I haven't read anything yet that indicates you need letters testamentary. You and the other named beneficiary need to be patient. This is sometimes time consuming work.

The Decedent's creditors may have no recourse against the beneficiaries. This is an advanced topic for which you may eventually need to buy an hour of legal time. For now, I would not assume that you or any other beneficiary needs to pay the Decedent's bills from the proceeds of any of these accounts.

You may have the option of disclaiming the IRA account, although it appears that you have no legal obligation to do so. Also, this may be more trouble than it is worth, depending on the value of the IRA. And, as you suspect, if you disclaim, the account would now be in the Decedent's "estate," and subject to the Decedent's creditors. This may also be a income tax "disaster" in that the proceeds may be immediately taxable.

Who gets the other portion of the trust residue?

Was there a conservatorship of the estate?
 

Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential
data-ad-format="auto">
Top