by Guest » Mon Jul 12, 2010 05:28 pm
Hi!
My mother died in June of 2008, and left my (Step) dad as beneficiary on her ira. Five days after she died, I have the paperwork where he obtained the IRA and it became his. My dad passed away in February of this year, and I just received a notice and called on this IRA, where my step-dad has listed HIS son as sole beneficiary. Now, my "step-dad" has been my dad since 1976, and has been a wonderful father to me. I also had conversations with my mother in the last year of her life, where she clearly stated there was some money--not much--- that should be divided between, me, my brother, and my step-brother. My step dad never mentioned this, nor did me or my brother EVER get anything monetary from the passing of my mother or step-dad. Both wills stated that everything not specifically listed is to be split three ways between us kids, and I am assuming that being named "beneficiary" is the same as "being on a list", so I am tough out of luck? (the IRA is for $18,000)
Thanks,
Sally in Michigan
My mother died in June of 2008, and left my (Step) dad as beneficiary on her ira. Five days after she died, I have the paperwork where he obtained the IRA and it became his. My dad passed away in February of this year, and I just received a notice and called on this IRA, where my step-dad has listed HIS son as sole beneficiary. Now, my "step-dad" has been my dad since 1976, and has been a wonderful father to me. I also had conversations with my mother in the last year of her life, where she clearly stated there was some money--not much--- that should be divided between, me, my brother, and my step-brother. My step dad never mentioned this, nor did me or my brother EVER get anything monetary from the passing of my mother or step-dad. Both wills stated that everything not specifically listed is to be split three ways between us kids, and I am assuming that being named "beneficiary" is the same as "being on a list", so I am tough out of luck? (the IRA is for $18,000)
Thanks,
Sally in Michigan
Posted: Mon Jul 12, 2010 06:33 pm Post Subject:
Oh we are caught in a terrible rerun. And despite all the people with whom I have this conversation 2 more will pop in their place with the question (I guess it's like white hairs).
Sally, you are about to learn a very important lesson about estate planning and beneficiary designations vs. Will directives. The good news is beneficiary designations trump Will directives. The bad news is, beneficiary designations trump Will directives. No, there's no typo there.
You can parade the Will around all you want, it's request (and that's exactly what it is) that all property be divided in equal shares holds zero baring on the beneficiary designation stipulated in that IRA. Meaning, 100% of the IRA funds are to go to step brother.
Estate planning rule # 1: Make sure your beneficiary designations and your Will agree with each other, otherwise someone's going to be very disappointed.
Posted: Tue Jul 13, 2010 05:00 pm Post Subject:
If there's any good news . . . it that you won't have to pay income tax on the $18,000 that your step-brother will have to pay.
If you're feeling particularly vengeful, then hope that the $18,000 puts him in a higher tax bracket and causes him to pay a penalty for being underwithheld for the year.
Other than that, BNTRS has laid it all out in the open for you and others to read.
Posted: Mon Sep 20, 2010 11:55 am Post Subject:
I think we've had similar discussions in the recent past. Let me go over them and see if I can add anything to it.
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