Participant & spouse (primary beneficiary) die in plane crash. Her children and his children want part or all of benefit

[TPAVP]

Contigent Beneficiaries are his children. If Participant died first, benefit goes to his kids. If not, it would go to her estate. Both parties agree that time of death was at the same time and are willing to split benefit. Benefit in excess of $1 mil. They want to keep tax deferred status. Any opinion or cites on legality of this and tax options they may have??

[david rigby]

Should we presume that the plan's provisions have been reviewed, especially with respect to defining a beneficiary, or successor beneficiary?

[jevd]

Check state simultaneous death rules as to presumtion of who died first. This is generally not stated in the plan document.

[Harwood]

Does the "Uniform Simultaneous Death Act" come into play?

[TPAVP]

beneficiary is defined as, "the person or persons entitiled to receive the benefits which may be payable upon or after a participant's death"

[TPAVP]

I have done some research on the USDA and it does not appear that the state of Louisiana has adopted it. Although, I'm not sure if we could apply it to the situation or not. I just don't know how we can assign benefits to her children if the beneficiary was not alive upon death of the participant. Maybe an estate attorney would help. I'm just not sure as to where the plan leaves off and the state laws pick up. The document states clearly that if the primary beneficiary dies first, the benefits go to the contingent beneficiaries. Just don't know about simultaneous death....

AG

[Kirk Maldonado]

Isn't there an issue as to whether ERISA preempts the Uniform Simultaneous Death Act?

[E as in ERISA]

Can you do an interpleader and deposit the benefit with the court and let it decide?

[mbozek]

If the parties are willing to settle the dispute voluntarily why should the plan admin object. There are two ways to settle : 1- all the parties (including the personal representatives of minor children) agree to receive a share of the benefits and provide the plan admin with waviers, releases and hold harmless agreements. 2 the plan admin can file a complaint in interpleader in fed ct. naming all of the beneficaries as defendants and then the parties can stipulate to the settlement of the benefits. This option is more expensive than the first option because of the cost of retaining a lawyer to draft the complaint and the filing fees but it is a decree entered by the ct. Your should consult with counsel to determine the best option.