Minor Beneficiary

[Guest Scout]

I'm sure this situation isn't unique! A divorced participant died without a designated beneficiary for a defined contribution pension plan. Through the order set forth in the plan, his son (8) is the beneficiary. The ex-wife/mother cannot/will not get the documents showing that she is the legal guardian of the son's estate. The required minimum distribution rules say that for a non-designated beneficiary, pay-out must be by the 5th year after the participant's death. The son will not be 18 for 10 years. Any suggestions? (Remember, the mother won't be named the legal guardian of his estate).

Thanks!

[Guest Jennifer Reid]

The only reason proof of guardianship is usually required for distribution to minors is because a minor cannot give legal consent to the distribution. In the case of a minimum required distribution under 401(a)(9) within 5 years of a participant's death, that distribution can be made without consent, so the distribution can (and should) be made directly to the minor. If his mother learns that when her child is 13 he will be coming into some money on his own, she may be more inclined to have herself declared his guardian.

[david rigby]

... remembering that there is a difference between "guardian of the person" and guardian of the person's estate".