Advanced Underwriting Consultants

Beneficiary Designation vs. Will

An agent has a situation where her client created rollover IRAs shortly before the client’s death.  The client’s spouse is the primary beneficiary, and the children are secondary.  One of the children asked the agent how the IRA money can go into the family trust instead. 

I told the agent that the beneficiary designation trumps all other documents.  It is possible to re-direct the proceeds to the children if the surviving spouse disclaims, but that’s the only relatively simple option.  Disclaimer will require the participation of an attorney.

Linas Sudzius