No beneficiary designation on a deceased participant

[Guest jetfaninmn]

We have had a death in one of our take overplans during transition. The participant never completed a beneficiary designation form. She has Revokable Intervivos Trust for her assets.

Because there is no bene designation, does the plan have the right to name someone else as beneficiary, not the trust. Can the plan name the children the benes - her spouse is deceased. How do I handle this??

[david rigby]

What does the Plan say?

[Belgarath]

Most plans I've seen say something to the effect that if no beneficiary is named, then the benefit is payable to the spouse, (if there is one) and otherwise payable to the Participant's estate.

Particularly if the amount is large, you should check with an attorney.

[mbozek]

What does the plan provide if a bene is not designated? Usually the plan will have a default bene such as the spouse if married or estate if single. In a k plan the spouse is automaticlly the bene unless another person was designated.

[Lori H]

What if the prototype document does NOT address this. I.E. corbel. Is there a citation that states an unmarried deceased participant that did not designate a beneficiary, their plan assets will go to their estate?

[Guest mjb]

I find it hard to believe that a prototype plan would not have default provision somewhere in the document. Did you check the beneficiary designation form? ERISA does not mandate any default beneficiary. If no bene is designated then the plan has a responsiblity to either pay the estate or divide the assets among the participant's surviving heirs. (But what administrator wants to take on the duty of searching for heirs?) Is there an estate that will be probated? If so the plan could pay the estate if a claim for benefits is filed by the executor or decedent's administrator.

[J Simmons]

I don't use Corbel's Prototype but notice that under Article VIII, Participant Administrative Provisions, of one of the DC Prototype Plans there are default death beneficiary designations.

[Lori H]

Section 6.2(e) in Corbel