Death of Solo K Owner

[Zoey]

Blah...

We took over a plan from another TPA who didn't keep good records.

First, my question is, how do we do the plan termination amendment when we have no one to sign now? It was a Solo K and the only participant (owner/trustee) passed away.

Second, the prior TPA didn't have any beneficiary forms on file. The owner was not married. I have asked the broker (who has been in contact with the owner's child), if the child has found any beneficiary forms with the owner's personal or business files. Lack of that, the plan is directed to pay out to the estate based on the division of the Will, correct? (For instance, say he has 4 children and the Will states liquidation of assets and division of the liquidation at 25% to each.)

Thank you so much for any advice/opinions you can give.

[Lou S.]

Most master texts will deliniate beneficiaries in the absense of a beneficiary designation form.

Typically the executor of the estate would sign the documents.

[mbozek]

Blah...

We took over a plan from another TPA who didn't keep good records.

First, my question is, how do we do the plan termination amendment when we have no one to sign now? It was a Solo K and the only participant (owner/trustee) passed away.

Second, the prior TPA didn't have any beneficiary forms on file. The owner was not married. I have asked the broker (who has been in contact with the owner's child), if the child has found any beneficiary forms with the owner's personal or business files. Lack of that, the plan is directed to pay out to the estate based on the division of the Will, correct? (For instance, say he has 4 children and the Will states liquidation of assets and division of the liquidation at 25% to each.)

Thank you so much for any advice/opinions you can give.

You need to check with the attorney for deceased's estate to find out who is the executor of the estate. Normally the executor would become the personal rep of the owners estate which includes both the business and the 401k plan and has the power to take all actions that the owner could take on behalf of the plan including termination and distribution of assets. As for who receives payment if there is no designated beneficiary, the executor needs to look at the plan terms to see what the succession of distribution is if the deceased was not married. Some plans provide for distribution of benefits to all children equally before the estate. If the estate is the payee the plan distributes the benefits to the the estate.

[Zoey]

Thanks so much! You both have been very helpful!