Legal Question in Wills and Trusts in Massachusetts
MA. Will, standard format, surviving spouse is also executor, and names others under part "Three", if we both pass on at same incident. I believe if we go together -then estate passes to secondary beneficiaries. Is this true? The main issue here is an IRA at a bank which names the spouse as "designated" beneficiary and yet will not pay out full; holding back because of IRS rules on disbursement which may include beneficiaries outside the survivor clause of the Will- outside the will. Who/what takes precedence. As survivor/ executor, I feel I am entitled to entire balance of a bank IRA. as empowered by a proper Will.
1 Answer from Attorneys
The Wills should have a survivor clause which will designate if you are both killed simultaneously one of you shall be deemed to have survived the other.
The beneficiary named under an IRA takes precedence over a Will same as a Life Insurance Policy. Unless the IRA limits a Spouse's interest to 50% by designation, the IRA goes to the named Beneficiary less any income tax or estate tax implications. As a spouse under current law, there is only an income tax implication if you withdraw all of the money as opposed to rolling it into a new IRA.
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