death of participant with no beneficiary form

[betheeg]

Plan participant dies and plan sopnsor cannot locate beneficiary form. He was single with no children. The plan doc says beneficiary without a form is parents and then estate. Parents are still living.

The plan sonsor received a letter from an attorney asking for the participant's balance to be made payable to his estate. She attached the Probate of Will from the court naming his sisters as executrix's of his estate. Does this document override the plan doc so that the distribution to the estate can be done? And is there a time frame that this must be done within (the participant just died this summer)?

Thanks for any help.

[jevd]

IMHO the plan document rules. If parents disclaim then the estate would be the default beneficiary. There may be other opinions on this matter.

[Bird]

The plan beneficiary, whether it is named on a form or by default in the document, is in fact the beneficiary; it doesn't matter what the will says. As noted, the parents could disclaim, but that's a different matter.

The time frame is determined under the plan's RMD rules - either minimum distributions must start by the end of the year following death, or the account must be fully distributed within 5 years; the plan may give those options or force one on the bene.