401K + probate

[birdbunch]

Hi,
I am in florida. My mom named 5 benificiaries on her 401K. I was told we should not have to probate this. The people managing it say that it has to be probated and a court appointed exectuter has to sign that it can be dipersed. Is this true or are they just trying to hold on to our money?

 

[advisor10]

JUNE 26, 2001

DEAR BIRDBUNCH:

Your situation is somewhat complicated. The company managing the 401k funds is correct--they are requiring that the executor be the only legally authorized person to sign off on this money in order to protect themselves against the possibility of some other party possibly trying to submit a claim for these funds (although that is not very likely).

It is true that the court appointed executor has to apply for the probate process in order to receive the legal authority to act as executor and distribute the 401K monies specifically to the 5 named beneficiaries.

Who told you that it should not have to be probated? What they may have meant was that the 401K funds may not technically be considered a part of her estate (and should not be considered as part of her total assets) since this money is not going to be divided among any other beneficiaries that may have been mentioned in the will--the 401K money is only going to specific beneficiaries.

SINCERELY,

[email protected]