401(k) Distribution upon Death

mike2013 · September 2013

Recently received a notice from two separate family members (sisters) requesting distribution of fathers 401(k) form. However,cannot find any record of beneficiary designation. Father was a former employee who terminated in 2009 but left funds in the plan. Mother recently passed away as well.
Dilemma is how do we determine who has a legal right to the fathers funds as we cannot release without proof of legal right. In addition, am sure auditors would require a copy of death certificate. Would not a court document be required to release funds as have no idea who has a legal right to the funds.

What do we request from anyone who is seeking release of funds in such a situation?

Thanks,

Dutch2 · September 2013

Have had this (kinda) happen before. Yes, you will need a copy of the death cerfificate for your former employee. If you have no copy of the bebeficiary document the funds will have to go to his estate. Or in this case probably to the mother's estate. Did Mom have a will or did it go through probate? In hind sight, when he passed his account should have been transferred to his beneficairy or to his estate.
Good luck this may be fun before it is over.

Sharon McKnight SPHR · October 2013

Recently received a notice from two separate family members (sisters) requesting distribution of fathers 401(k) form. However, ...

Your first post! Welcome to the Forum. :welcome:

Sharon

sonny · October 2013

I'd run it my your attorney if you have one. We had similar case but there was no spouse. The ee's beneficiary was deceased. The fighting family members ended up having to go court. It took forever b/c no one wanted to pay to have it settled. Unbelievably, the day after the checks were finally issued, one of the them also died.

401(k) Distribution upon Death

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