Deceased Participant's account balance

[Nassau]

An attorney for a ABC Company participant called on behalf of the account for a deceased ptp stating that the listed beneficiary is the mother of the ptp, and suffers from dementia; he also remarked that the brother of the ptp (son of the bene) has power of attorney. Please advise as to what the Recordkeeper/Trustee needs to have on file and/or do in order to be able to work with the ptp's brother/bene's POA so as to distribute assets in the most efficient manner possible.

[david rigby]

Sorry if this sounds snarky, but "read the plan?" Most plan docs define beneficiary and also what to do if there is no designated beneficiary. For example, if the conclusion is that no living person is properly designated, the doc might state the beneficiary is the estate (which is not to be confused with "executor of the estate").

[Belgarath]

I don't think the issue of not having a designated beneficiary is in question here. There is a designated beneficiary, but that bene is apparently incompetent, and her other son has a POA. Really, it is up to the Plan Administrator seek legal counsel to determine precisely what constitutes a valid POA for these purposes. Presumably once that requirement is satisfied, then that individual can request a distribution on behalf of the beneficiary, and the Plan Administrator can then pay it.

[ESOP Guy]

Although most documents will even tell what to do if the person due a payment is believed to be incompetent.

Having said that what if might tell you is if there is a person you are satisfied is a POA you can make the payment to that person, for the benefit of the person due payment. At which time the questions still stands.

I would start by asking for paperwork from the POA that would allow you verify they are the POA. I would then follow the other advise given, have an attorney look it over.

[masteff]

As said by several above... get legal counsel (or actually, have the client get their legal counsel) to review the POA and determine if it's sufficient under the relevant state's laws. A few POAs are poorly written and might be refused.

I recall the State of Illinois provides a standardized POA "short form" that is absolutely wonderful (from a plan administrator's perspective) as it explicitly lists "retirement plan transactions" as one of the actions permitted. (If anyone is curious, here's a link to one version of it: http://dnr.state.il.us/mines/dog/Forms/Pow...rney%20Form.pdf )

[Peter Gulia]

Nassau, you didn’t quite say whether the person who might be an agent for someone was the participant/decedent’s agent or is the named beneficiary’s agent.

If the participant named an agent, the agency ended with the principal’s death.

If the agent is the beneficiary’s agent, what might the agent hope to do with whatever power the retirement plan might recognize?

Has anyone filed a claim? Or is there perhaps nothing that now needs the administrator’s decision?