Q: Can an IRA with a beneficiary be changed to match a will if the beneficiary is in agreement?
I am the executor for my grandfather's estate. He left a will with percentages for my uncle, myself, and my brother. However, the biggest account is his IRA, which he left to my uncle as the beneficiary. My uncle wants to split the IRA with myself and my brother (the other two people listed in the will) according to what the will states. Is there anyway to get a court order if there is an agreement on division of the IRA funds? We would just like to split it into 3 separate Inherited IRA accounts. The estate is being probated in North Carolina if that information is needed.
A:
He can waive collecting under the beneficiary designation, but that will have severe tax implications. There is no way that I am aware of to 'change' beneficiary designations either in probate (and remember this won't go through probate because there is a beneficiary) or with most IRA custodians.
The BEST you can probably do is to have Uncle name the other two as beneficiaries of the IRA once it is in HIS ownership. There may be alternate ways to structure things under NC law. I'd recommend you consult with a local lawyer to see if there might be some other options, but this is not something you should try to 'do on your own' because the tax implications could be significant!
-- This answer is offered for informational purposes only and does not constitute legal advice or create an attorney/client relationship.
I am licensed to practice in Michigan only. Please seek competent local legal help if you feel you need legal advice
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