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    Ducci's Avatar
    Ducci Posts: 3, Reputation: 1
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    #1

    Jun 24, 2012, 01:03 PM
    IRA -Trust Beneficiaries
    My dad passed away leaving a trust. He has 4 children He had an amendment written to the trust, Disinheritance of one child. He also has an IRA which did not list beneficiaries. The bank holding the IRA are splitting the funds including the disinherited child. Do we have any recourse?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #2

    Jun 25, 2012, 07:41 AM
    Quote Originally Posted by Ducci View Post
    My dad passed away leaving a trust. He has 4 children He had an ammendment written to the trust, Disinheritance of one child. He also has an IRA which did not list beneficiaries. The bank holding the IRA are splitting the funds including the disinherited child. Do we have any recourse?
    If there were no beneficiaries identified for his IRA then the proceeds are distributed according to the policy of the IRA administrator. Typically they will distribute assets to a living spouse and/or the decedent's estate - they don't typically distribute directly to children who aren't named as beneficiaries, but perhaps there are exceptions. So - do you know what the policy is of the IRA custodian? If they distribute to the estate then the terms of your father's will will control who gets what. You mention he had a trust but you need to find out what his will says.
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    Ducci Posts: 3, Reputation: 1
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    #3

    Jun 25, 2012, 03:12 PM
    Are there specific rules n regulations for annuity's. Can an annuity be included in a trust?
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    Ducci Posts: 3, Reputation: 1
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    #4

    Jun 25, 2012, 03:17 PM
    Is it the banks responsibility for beneficiaries and can they designate?
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #5

    Jun 26, 2012, 05:40 AM
    Quote Originally Posted by Ducci View Post
    Are there specific rules n regulations for annuity's.?
    Yes

    Quote Originally Posted by Ducci View Post
    Can an annuity be included in a trust?
    Yes
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
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    #6

    Jun 26, 2012, 05:45 AM
    Quote Originally Posted by Ducci View Post
    Is it the banks responsibility for beneficiaries and can they designate?
    Not sure what you mean by "responsibility or beneficiaries," but no, they can't over-ride the IRA owner's selection. However they are responsible for contacting the beneficiaries to distribute the assets.

    The IRA owner specifies the beneficiaries. But if the owner has failed to name a beneficiary then (as I wrote earlier) the IRA custodian (the bank or investment house managing the IRA) must follow their preexisting policy for determining who inherits the assets. Presumably your father was aware of that, and as such made a decision (through his lack of action to name beneficiaries) to accept the bank's policy.
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