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Asked 3/29/2011
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401(k) distribution with no listed beneficiaries I have received a request by two sons for a 401k distribution, due to death of their father, a former employee of ours, but nobody is listed as a beneficiary to his 401(K) however, the sons are benficiaries on other benefits, (life insurance, etc.). Do I approve the distribution request or are there legall implications in my doing so? |
Answer 1/6 - Submitted 3/29/2011
Yes I would approve it they are the legal beneficiaries of all the rest of his assets. They will get that too if you are afraid of legal implications talk to a lawyer first but if there is no stipulations I would give it to them they are going through enough pain without having to go to court over this.god bless
Answer 2/6 - Submitted 3/30/2011
Answer 3/6 - Submitted 3/30/2011
I would not make this call. Though it seems like the right and somewhat easy thing to do. You could find yourself being sued by the estate. Meaning the other people who may be entitled to that money say a wife or a daughter or someone else that you don't even know about. This is a really sticky situation I hope you have a legal department in your company to consult, which i'm guessing you don't since you are here asking this question. I'm really sorry for your loss but I wouldn't make this distribution without some legal advice to do so. It may cost you in the end. Good Luck.
Answer 4/6 - Submitted 3/30/2011
This seems like a much too serious matter to be asking on a website. You should have written guidelines that will tell you the legal options in cases such as this. In fact, most 401Ks that I have seen clearly state that the money goes to the estate if beneficiaries are not named. You should tell the sons to have the executor of the estate contact you about this.
Answer 5/6 - Submitted 3/30/2011
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