How to Get an IRA From a Deceased Parent With No Beneficiary
Original post by Stephanie Ellen of Demand Media
An individual retirement account, or IRA, is a way to accumulate savings for retirement with significant tax breaks. A beneficiary is a person entitled to receive the funds from the IRA. A beneficiary clause is added to the paperwork indicating who should inherit the proceeds. If a parent dies without naming a beneficiary in the IRA paperwork, distribution of the proceeds can become complex. However, you may still be eligible to receive the proceeds.
Obtain a copy of the IRA agreement. If your parent did not leave a copy of the IRA agreement in their belongings, you may be able to get a copy of the agreement from the IRA plan administrator.
Check the last article in the IRA plan for a paragraph that states what happens to the funds if the participant dies without naming a beneficiary. Most IRA agreements will contain that clause. If the plan does not have a clause specifying a beneficiary, the IRA funds will be payable to the decedent's estate.
Get a copy of your parent's will. If the will leaves the estate to you, and the IRA agreement indicates the estate is the beneficiary of the plan, you will likely inherit the IRA along with the estate.
Tips & Warnings
- Inheritance from a will is not automatic. You may be required by your state to file a copy of the will with the court and seek proceeds from the will, or take additional steps to receive the proceeds.
- Copy of the IRA agreement
- Copy of your parent's will
- Bankers Online; When There's No IRA Beneficiary; Ken Golliher; April 2004
- Timing.net: Estate Planning -- Trusts, Wills and the Probate Process
- Lawyers.com: What Happens If I Die Without a Will?
About the Author
Stephanie Ellen teaches mathematics and statistics at the university and college level. She coauthored a statistics textbook published by Houghton-Mifflin. She has been writing professionally since 2008. Ellen holds a Bachelor of Science in health science from State University New York, a master's degree in math education from Jacksonville University and a Master of Arts in creative writing from National University.