My ex-husband died intestate with a sizeable 401K and no named beneficiary (more on that later). He was unmarried. We had two children together, and they are his only children. I am the Estate Administrator. The 401K Plan Administrator will pay the funds only to the Estate. Can the children still take advantage of the stretch Inherited IRA?
About the beneficiary: My husband was in hospital and died at the same time his employer was changing Plan Administrators. My husband named our children as beneficiaries with the old Plan, but due to his illness was unable to complete new beneficiary forms for the new Plan, and the new Plan will not accept the previous beneficiary document. Is there anything we can do about that?
I have engaged an estate attorney who appears to be clueless.
Answer
No because your husband did not name the children as beneficiaries. Now that money, all of it, will go to the estate and be available to your husband's creditors, if. Taxes will have to be paid on that money.
The new plan does not have to accept the beneficiary forms from the old plan. I am not aware of anything that requires them to do so. If you do not like your attorney then fire him/her and get another more experienced attorney.
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