• 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.

401k death benefits

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


Junior Member
What is the name of your state? Michigan

My mother-in-law passed away on june 27th. Here three children are trying to settle her 401k. What is the best and least tax way to handle the 401k?


Senior Member
There should have been a beneficiary on file.

The servicing financial institution will assist the beneficiary in deciding on disbursement.

For best tax benefit, take periodic payments.

If there is only one beneficiary and three of you want to share the proceeds, the beneficiary will have to pay all the taxes, and gift to the others.

If there are three listed beneficiaries, then each will receive their portion from the financial institution and will be required to pay tax on the amount disbursed.


Find the Right Lawyer for Your Legal Issue!

Fast, Free, and Confidential