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Double DeathsDouble Deaths
Retirement benefits are typically left to the participant's surviving spouse with the expectation that she1 will do something with them: either roll the benefits over to her own retirement plan to continue maximum income tax deferral, or disclaim the benefits so they can flow to the participant's children or a credit shelter trust as the contingent beneficiary. But what happens if the spouse, having
Natalie B. Choate, of counsel, Bingham McCutchen LLP, Boston
Retirement benefits are typically left to the participant's surviving spouse with the expectation that she1 will “do something” with them: either roll the benefits over to her own retirement plan to continue maximum income tax deferral, or disclaim the benefits so they can flow to the participant's children or a credit shelter trust as the contingent beneficiary.
But what happens if the spouse, having survived the participant, dies without accomplishing either task?
The answer is not pretty.
THE ROLLOVER PLAN
Leaving benefits outright to the surviving spouse, with the expectation that she'll roll them over to her own IRA2 is an excellent estate-planning approach in most cases. In ad...
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