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After going through the experience I posted about, I reviewed all my financial accounts and beneficiary/TOD information on file, and made updates where necessary, and made sure all beneficiaries were made aware of their designation as such, just to be on the safe side.
Correct that some list the TOD designee on the address line. Most do not show this information on printed statements, and often (but not always), I can log onto my account online and view this info. I think all of them mail out a beneficiary or TOD designee confirmation anytime a designation or change is made, but be aware this may be the only written communication provided, so save that letter.
One thing I learned after serving as an administrator, was that some financial institutions can be almost impossible to deal with. It didn't help that as an administrator who was not the designated beneficiary, the account was excluded from the estate, so I was out of the loop as far as that account was concerned.
Everything you've experienced is how the IRA has been set up. It cannot be placed into the will. It can be placed into a trust account upon holder demise, thus preserving some authority to its beneficiary.
Its also true that once the ' abandon' account reaches the states, it's their funds. Doesn't matter if you were executor / admin of estate.
I have for 11 years conferred with lawyers and the state on this very matter. . All come back with ' tough luck buttercup!'. Thus why I encouraged in my earlier post to seriously drop $100 into a consult with the financial advisor. They understand the transfer and the current laws on this investment.
The main security concern anyone should have- (relative or no)t is handing over the soc # and date of birth. It's ripe for identity theft. My lawyer had written into financials a doc case number filed for verification. Thus preserving the identity info.
Yes the name was on the main form with an addendum to verification . The financial principal isn't going out to track anyone down. Nor will a bank. They are holders and report to the state/fed and or sec.
Yes, my sister's kids. My sister is deceased, unfortunately. The two kids, now grown, have had a tough life. So I want to leave them something to hopefully help them in life, even if it's later in their lives. They deserve some good luck.
Why wait until you're dead? If the kids are having a tough go, but have kept their noses clean, then why not distribute some cash their way, now?
I know it's not really much, but you can "gift" them $17,000ea., without them having to pay ANY taxes on it. Then, when Jan. 1st rolls around, you send another $17k check to each. If you gotta SO, then they can do the same (gifting $17 thou, tax free.) In 4 months, you can move $68,000 tax free. Well, it's something.
Or, you can let them have your IRA's and they'll get to pay the taxes on their RMD's.
Why wait until you're dead? If the kids are having a tough go, but have kept their noses clean, then why not distribute some cash their way, now?
I know it's not really much, but you can "gift" them $17,000ea., without them having to pay ANY taxes on it. Then, when Jan. 1st rolls around, you send another $17k check to each. If you gotta SO, then they can do the same (gifting $17 thou, tax free.) In 4 months, you can move $68,000 tax free. Well, it's something.
Or, you can let them have your IRA's and they'll get to pay the taxes on their RMD's.
The OP may need all her money herself - one never knows.
The taxes are a moot point.
No matter who is going to use the IRA money - the OP or her heirs - someone will pay the taxes - unless someone is very low income at withdrawals time.
Last edited by L00k4ward; 09-05-2023 at 08:44 AM..
What are your thoughts on letting others know they're in the will or a beneficiary designation? Will they be tracked down, if they move & no SS#? People are funny about giving out SS#s these days, so they might not want to give that info to me, anyway.
(Assuming no scammers or conmen are involved) If someone who is a potential beneficiary of money doesn't want to give you their SS#, I might figure they are too dumb to get my money.
Let's also accept the fact that SS#'s and TONS of other personal information are out there on the internet. Much of it in a public records. Some info may cost you a little money but you can get it legally. And theres always the dark web ready to sell anything.
Yes, protect your SS# in all ways you can, but it's available far more easily than most of you realize.
Yes, protect your SS# in all ways you can, but it's available far more easily than most of you realize.
When I was in school my SSN was regularly posted on the wall for exam results.
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