Legal Question in Wills and Trusts in Massachusetts

Re: Who gets 401(k) money after death?

The proceeds of a 401(k) go to whomever is named beneficiary -- in this case, Mom.

This situation is why I tell all my clients to coordinate their beneficiary designations with their other estate planning documents.

Re: Who gets 401(k) money after death?

To answer your last question, 401K proceeds are NOT included in the probate estate. They pass directly to the named beneficiary. Same process applies for life insurance.

Re: Who gets 401(k) money after death?

They are both correct.

Re: Who gets 401(k) money after death?

It is my recollection that according to federal law, a surviving spouse receives the proceeds (trumping any beneficiary designation to the contrary, unless the spouse has signed a waiver of benefits before a notary public). A specific 401K plan administrator can confirm this with a telephone call, no doubt.

Unless the estate was designated as beneficiary (or all named beneficiaries are deceased or disclaim) and the spouse signed a waiver, as above, or disclaimed her interest after his death, the benefit passes according to the requirements of the plan (recognizing rights of a surviving spouse) or a valid beneficiary designation (as above).

This is why it is very important to review the beneficiary designations of life insurance, retirement plans, etc. in the context of estate planning, and to consult with an estate planning attorney in preparing an estate plan.