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  1. #1
    Join Date
    Feb 2006
    Location
    London, KY
    Posts
    3

    Unhappy 401k Distribution Upon Death and Federal Tax ID

    State is Kentucky. I am trying to help my grandfather close out an estate from his deceased son. The son passed away in April of this year and left a 401k plan with no designated benificiary. Located in Kentucky. We have a Petition/Order to Dispense with Administration signed by the judge and filed with our District court transferring all personal property to my grandfather. Besides the 401K the only other property was about $400.00 in a personal bank account.

    JP Morgan Chase has the 401k and they are requesting that we get a Federal TAx Id number for the estate and something called a Small Estate Affidavit before they can send the check. Is this standard procedure? I have checked with my county court and they do not have a form called a small estate affidavit and they say the form we already have should be sufficient?

    One more question, the plan balance is $1101.00. Will Jp morgan hold out taxes on this or will we have to file a tax return in April to pay taxes? And any idea about the amount of taxes on this amount of money? Just trying to decide if its gonna be worth all this trouble.

    Thanks in advance to anyone who can shed some light on this for me. Will be much appreciated.

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    75,010

    Default Re: 401k Distribution Upon Death and Federal Tax ID

    It sounds to me like the form you have, signed by the judge and authorizing you to collect the estate's assets, should be sufficient. Did you actually send JP Morgan Chase that form, with their stating that it's not sufficient?

    You should expect that the estate will have to file final tax returns in association with the money it receives and distributes. You're correct that the forms would be due next April, but you don't actually have to wait that long to prepare and submit them.

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