Terminated PSP, sole trustee passed away years ago

We have a PSP with owner-only as plan trustee.  The trustee died many years ago; one of the employees of the company bought the business after his death.  

The trustee did name the new owner as trustee of the plan, but no one can find that resolution, except that a corporate resolution naming the new owner was prepared and the new owner signed as employer and trustee.

The plan is funded with a pooled annuity and a small sum in a trusted bank account.

The annuity was surrendered, all but two were paid out as they terminated employment.  They both received their RMDs prior to rollover.

The bank has been giving the trustee and his attorney a hard time releasing the funds from the checking account saying basically, that they does not and will not recognize the current trustee as trustee because he has not presented the "proper" paperwork naming the successor trustee.

The plan document states the beneficiary (wife) is to be the trustee in the event no trustee no trustee can be found. DATAIR doc.  The bank will not even accept this as proof; the plan has been updated each time, GUST, EGTRRA and PPA with the new trustee.

In lieu of digging up the original owner/trustee's burial plot, I would think getting the DOL involved might be the only solution at this point.

5500 fillings are up to date.

Suggestions?

Generally the Plan Administrator has the right to name a Trustee, including a successor Trustee, regardless of whether the former Trustee agrees.

Assuming that provision is in the document, why would a current resolution/amendment saying that not suffice?

3 hours ago, Bill Presson said:

Generally the Plan Administrator has the right to name a Trustee, including a successor Trustee, regardless of whether the former Trustee agrees.

Assuming that provision is in the document, why would a current resolution/amendment saying that not suffice?

I'm thinking it was a sole prop and what was bought was assets and the plan was not dealt with, so it is still "owned" by the estate.  Query: was this a stock sale or an asset sale when the employees bought it?  If the latter, I can see why it's a problem.

3 hours ago, thepensionmaven said:

The trustee did name the new owner as trustee of the plan, but no one can find that resolution

I doubt it exists; the fact pattern immediately prior says or at least implies that all of this happened after the original trustee died.

If the new company adopted and maintained the plan as its own, then I agree with Bill Presson.  The new owner should be able to name himself as trustee and it sounds like he did.  I understand that it's a little fugazy with a new entity maintaining what was another entity's plan but they'll have to get over it.  I'd ask the bank "exactly what 'proper' paperwork do you want and we'll get it" (short of having the dead guy sign something...).

One of the employees bought the company, stock sale.  Plan is terminated except for one account which is with a bank.  Bank will not release the account until they have “proof” that the new owner/trustee was named trustee by the previous owner.  Because of this, two participants have not been paid out.

Plan was terminated in 2014.

1 hour ago, thepensionmaven said:

One of the employees bought the company, stock sale.  Plan is terminated except for one account which is with a bank.  Bank will not release the account until they have “proof” that the new owner/trustee was named trustee by the previous owner.  Because of this, two participants have not been paid out.

Plan was terminated in 2014.

You need to start threatening the bank with legal action and insist that they bring in their corporate legal.  The plan is ALWAYS a plan of the employer.  The employer has the right to change trustees.  The prior owner is NOT the employer because the employee bought the stock.  A corporate resolution changing the trustee and adopted by the corp is all that is needed.  Threaten them with violation of ERISA rights.  The bank is AN IDIOT (and sadly, that too often is the case!!!).

Larry.

16 hours ago, thepensionmaven said:

One of the employees bought the company, stock sale.

That's interesting; maybe a bit unusual in my experience for a small business but it really simplifies this situation.  The new owner has absolute control to do whatever s/he wants with the plan; you probably already have legit paperwork but as I said earlier, ask them to tell you exactly what they want.  They can't just keep making you dance around and say no to whatever sacrificial offerings you bring them.  As Larry "suggests" (ha) turn this around so they understand they have liability and they will come around.