John A Posted March 6, 2000 Posted March 6, 2000 A 401(k) plan participant and his wife died due to a car accident. The participant died immediately. The wife died about 2 weeks later from injuries sustained in the accident. Is the money paid to the secondary beneficiary named in the participant's beneficiary designation? Is the money paid to the wife's estate and then controlled by the wife's will? Is this another case where it would be best for the plan to file an interpleader action?
Dave Baker Posted March 6, 2000 Posted March 6, 2000 Dunno any reason why the participant's beneficiary doesn't become entitled to the account immediately upon the participant's death ... if the beneficiary is the participant's wife, then the funds would be a part of her estate at this point. Filing an interpleader without any actual claim to the funds by anybody other than the wife's estate's beneficiaries might be a breach of the plan administator's duty to operate the plan according to its terms
Michael Devault Posted March 6, 2000 Posted March 6, 2000 Assuming that the plan contains no provisions for common disasters, you might check state law. Some states have provisions for common disaster, requiring the beneficiary to survive the participant by a specified period of time, such as 30 days. If you're still at a "dead end," I agree that you should let the court decide. I'm interested in knowing how the matter is resolved. Good luck!
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