Legal Question in Wills and Trusts in Texas
Rights of Survivorship For an IRA Account in a Community State-TX
Husband died 8/1/2001 in TX. Through my credit union I had an IRA account in MY name and SS# since 1983.
In 1983 filled out Designation of Beneficiary form, naming my husband as beneficiary. He is no longer alive and I am being told that since the IRA account is in my name and SSN then half of it must go in his trust. If the IRA account was in his name and SSN then the entire IRA would go to me. This does not sound correct. My husband has a will that was written in 1982 that puts his property in a trust for his children, that are now 34, 32, 30. Will was never updated since kids were small. I don't think my husbands estate should get 1/2 of the IRA account. What do you think? The trust already is getting 1/2 of my house that I have made the payments on all our married life.
2 Answers from Attorneys
Re: Rights of Survivorship For an IRA Account in a Community State-TX
Boy, your posted question brings up a host of issues that need clarification. How was the ownership of the IRA set up? Were you married at the time it was set up? Were you married to him at the time he made is Will in 1982? When was the house bought? Federal laws governing IRA's also need to be consulted to see what bearing they may have. All of these questions can affect who gets what and how much. You definitely should consult a lawyer; the sooner the better. After determining the answers to these (and other) questions, only then can you choose the course that is best for you. If you're in the Austin area, give me a call.
Re: Rights of Survivorship For an IRA Account in a Community State-TX
I rather doubt that your husband's estate has any claim to your IRA. So long as you are alive, you can always change the beneficiary and that would pass by contract upon your death. Without specific research on the question, my answer is not to be taken as absolute gospel, although I'm pretty sure my analysis is good.
As to the house itself, who owned it and when? Did you and your husband buy it after you were married? Or did one of you own it before marriage? If it was bought during marriage, then it is community property and your husband's estate has a claim to half. Of course it is your homestead and therefore you cannot be dispossessed by the trust. If you were the only one paying on the mortgage and taxes, you may have a claim for reimbursement of a portion of those payments. If it's not fully paid, then the trust is obligated for half the payments due for mortgage and taxes.
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