Page 2 of 2 FirstFirst 1 2
Results 11 to 14 of 14
  1. #11
    Join Date
    Jan 2019
    Location
    Pugetopolis
    Posts
    114

    Default Re: Sister Died Without a Will. My Brother is Designated As Beneficiary of Her Pensio

    Quote Quoting llworking
    View Post
    Yes, an estate has to be opened, and legally any creditors must be paid from anything that did not have a designated beneficiary. Anything that had a designated beneficiary passes outside the estate, so I do not understand why the benefits administrator is asking for an EIN number. If you give them the EIN number then the check will be written to the estate rather than the beneficiary, which would be improper. Its the beneficiary's SSN that should be included on the form, not the estate's EIN.

    Of course, if for some reason the retirement account never had a beneficiary listed on it, then the money would have to go to the estate.
    They may want a EIN because there may be income taxable to the estate that accumulated prior to distribution. Requesting a EIN may also be routine for the company, at which point arguing can be a little like debating with a wall.

    Generating a EIN involves very little and I don't see a reason not to do so.

  2. #12
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Sister Died Without a Will. My Brother is Designated As Beneficiary of Her Pensio

    Quote Quoting MaltbyMark
    View Post
    They may want a EIN because there may be income taxable to the estate that accumulated prior to distribution. Requesting a EIN may also be routine for the company, at which point arguing can be a little like debating with a wall.

    Generating a EIN involves very little and I don't see a reason not to do so.
    Its not getting the EIN that is a problem, its using the EIN.

    Giving them an EIN for the estate means that the benefits administrator will issue the check in the name of the estate instead of the beneficiary. That can be VERY bad. Particularly if the estate has creditors.

  3. #13
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Sister Died Without a Will. My Brother is Designated As Beneficiary of Her Pensio

    Quote Quoting MaltbyMark
    View Post
    They may want a EIN because there may be income taxable to the estate that accumulated prior to distribution. Requesting a EIN may also be routine for the company, at which point arguing can be a little like debating with a wall.

    Generating a EIN involves very little and I don't see a reason not to do so.
    What distribution are you speaking of? There is no distribution. The account becomes the property of the designated beneficiary. That is all that happens.

    Quote Quoting llworking
    View Post
    Its not getting the EIN that is a problem, its using the EIN.

    Giving them an EIN for the estate means that the benefits administrator will issue the check in the name of the estate instead of the beneficiary. That can be VERY bad. Particularly if the estate has creditors.
    Not only would it be bad it is contrary to Illinois law whatever the plan admin may think.

  4. #14
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Sister Died Without a Will. My Brother is Designated As Beneficiary of Her Pensio

    Quote Quoting budwad
    View Post
    What distribution are you speaking of? There is no distribution. The account becomes the property of the designated beneficiary. That is all that happens.



    Not only would it be bad it is contrary to Illinois law whatever the plan admin may think.
    Its contrary to the law everywhere. Either the plan admin doesn't know what they are talking about or there isn't a beneficiary assigned to the account at all.

    I just thought of one other remote possibility. If the beneficiary is accidentally filling out the information as if he also had passed away, that could explain the error/disconnect.

    1. Sponsored Links
       

Page 2 of 2 FirstFirst 1 2

Similar Threads

  1. Heirs and Beneficiaries: Can a Fiance Be a Beneficiary to a Pension
    By Curious52 in forum Estate Planning, Administration and Probate
    Replies: 5
    Last Post: 06-25-2018, 12:43 PM
  2. Estate Assets and Debts: Can an Executor Authorize a Designated Beneficiary to Use the Decedent's Car
    By anordstrom2008 in forum Estate Planning, Administration and Probate
    Replies: 2
    Last Post: 07-18-2017, 08:46 AM
  3. Heirs and Beneficiaries: Contesting a Designated Beneficiary
    By tmbipa57 in forum Estate Planning, Administration and Probate
    Replies: 11
    Last Post: 09-25-2013, 11:44 AM
  4. Estate Assets and Debts: Brother Died Intestate, Father Did Not Claim Estate and Has Now Died
    By islandgirl23 in forum Estate Planning, Administration and Probate
    Replies: 1
    Last Post: 08-18-2011, 06:48 AM
 
 
Sponsored Links

Legal Help, Information and Resources