Distribution to Minor

[Guest HHR]

401(k) Participant died. Ne was never married, but has a minor child. Participant designated only his child as beneficiary. He also verbally expressed his desire not to allow the mother of the child to get access to the money. His benefit is over the $5,000 threshhold. What, if anything, can the Trustees do to carry out participant's wishes. Or are they limited to just distributing the account to the mother as legal guardian "for the benefit of" the minor?

[Guest b2kates]

It is a state law issue, not an ERISA issue. Participant could have named a Trustee for the benefit of the minor child.

Absent that, the local law will determine where the funds go. In New Jersey they would be held by the Probate court until the Beneficiary reaches 18.

Good Luck.