MYMYMY Posted August 10, 2021 Posted August 10, 2021 I am working with someone who was named as the primary (non-spouse) beneficiary of a 457 Plan. Two (2) days after the plan owner's death, the mother phoned Human Resources of the deceased employee's business and had them (Human Resources) submit a beneficiary change to her - the mother....and they did ! Is there a scenario where this is actually legal ?
MoJo Posted August 10, 2021 Posted August 10, 2021 17 hours ago, MYMYMY said: I am working with someone who was named as the primary (non-spouse) beneficiary of a 457 Plan. Two (2) days after the plan owner's death, the mother phoned Human Resources of the deceased employee's business and had them (Human Resources) submit a beneficiary change to her - the mother....and they did ! Is there a scenario where this is actually legal ? In a word, "no." In two words, "heck No!" The designation of a bene is the right of the participant. In some states, with some conditions, if a power of attorney existed, the POA holder may be able to change the bene (and I should have caveated that enough), BUT - and this is a BIG BUT - every POA ends at the grantor of the POA's death. No exceptions, no way no how. So, EVEN IF mom had a POA, her claiming the ability to change benes after death is null and void. BTW, what flavor of 457 plan is it? My answer doesn't change, but would be nice to know....
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