Plan Termination and Lost Documents

[Guest Thornton]

We've been asked to consult regarding the frozen mppp of a deceased doctor. The plan assets are approximately $1,200,000. The doctor administered it himself, and for the past 10 years at least was the sole participant. The attorney for the estate can only locate the 1993 and 2000 Forms 5500. He has been unable to find any plan documents, so we cannot ascertain whether or not they are up to date. Obviously, the attorney would like to terminate the plan and distribute the assets to the beneficiaries.

1) Is there a way to determine whether or not a 5500 was filed for other plan years? If they were not, it will probably be next to impossible locate the financials to complete them under DFVC. What then?

2) What if the document cannot be found? It probably was not updated since the brokerage firm did not send a GUST package since the account was coded as personal. (They volunteered this information.)

The attorney and the inheriting children want to do the legal and right thing, but are at a loss regarding what to do. Has anyone been in a similar situation?

Thanks.

[david rigby]

1. www.freeERISA.com may help. Older filings may be available for a fee.

2. Has a TPA been involved in any administrative functions, even if only for a short time? If only a brokerage, did that organization have a pre-GUST document?

[chris]

May not be applicable at all but we had a case where it was a single participant plan, the doc. died and no filings of any kind had been made for 8 years. Insurance company holding assets came up with a convenient way of using the plan assets to buy an annuity for the decedent's beneficiaries. Per the ins. co. there was no reporting b/c of the fact that all plan assets were used to purchase an annuity for each of the doc's beneficiaries????? Executor of estate signed off on all required amendments as of date of annuity purchase and plan deemed terminated at that time. Sort of iffy????? but the ins. co. legal/tax counsel seemed to think it would work.......

[david rigby]

Insurance company holding assets came up with a convenient way of using the plan assets to buy an annuity for the decedent's beneficiaries.

I'm shocked! Shocked!