Legal Question in Wills and Trusts in New Jersey
Inheritence Laws re: IRA Rollover
My Father and Step-Mother planned to divide their assets, upon the latter's death, to his 3 and her 2 children equally. My Father passed in January 2006. His IRA, which equaled 50% of their total assets rolled over into my Step-Mother's IRA. Her IRA named only her daughter as a beneficiary. My Step-Mother recently passed in March 2007 and her Estate was divided 5 ways except for her IRA, which my Step-Sister, as sole beneficiary, intends to keep those monies herself that were in her Mother's IRA, 75% of which were rolled into her Mother's IRA from my Father's IRA only 1 year earlier.
Do I and my 2 brothers have any legal rights to our 3/5ths of the monies that my Step-Sister inherited as beneficiary of her Mother's IRA, as most of that money came from my Father's IRA (Estate) just 1 year earlier?
3 Answers from Attorneys
Re: Inheritence Laws re: IRA Rollover
UNLESS YOU CAN PROVE SOME ARRANGEMENT BETWEEN YOUR STEP-SISTER AND HER MOTHER REGARDING A DISTRIBUTION OTHER THAN ALL TO HER, YOU HAVE NO CLAIM. ASSETS PASSING BY DESIGNATED BENEFICIARY, LIKE THE IRA, ARE INHERITED BY ASSET DESIGNATION, EVEN IF THE WILL SAYS SOMETHING ELSE. WHILE THE WILL MAY BE EVIDENTIARY OF THE UNDERSTANDING BETWEEN YOUR FATHER AND STEP-MOTHER, IN THE ABSENCE OF PROOF THAT THE IRA WAS TO BE SIMILARLY SPLIT, OR THE DAUGHTER EXERCISED UNDUE INFLUENCE ON HER MOTHER, YOU WOULD LOSE ANY LITIGATION
Re: Inheritence Laws re: IRA Rollover
I am sorry, but since the IRA passes by the beneficiary designation outside of the Will, you clearly lose (outside of unusual circumstances.) Unfortunately, this problem could have been prevented by good estate planning. These problems are commonplace and reflect the person probably just wanting a "simple" and "cheap" Will and fighting the attempts at Estate Planning. A little bit of extra time and legal expense would have produced the desired results.
I wish I could be of more help!
Ron Cappuccio
http://www.SaveYourEstate.com
Re: Inheritence Laws re: IRA Rollover
No
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