Q: Do distributions have to be made to all beneficiaries at the same time?
I was just told by my deceased mothers financial advisor that distribution from her accounts have to be made to all beneficiaries at the same time. We are talking about an IRA and a Brokerage account both of which have designated beneficiaries named.
A:
This may be true. Generally speaking, brokerage firms and custodians of retirement accounts have contractual terms in the account agreement regarding the timing of distributions to named beneficiaries after the death of an account holder. Additionally, depending on state and federal law, and the type of account, the institution may have fiduciary duties to all named beneficiaries. That would mean that it cannot give preferential treatment to one beneficiary to the detriment of another. Complications may arise if there is a "moving target" as to the account valuation and a percent distribution to multiple beneficiaries.
If you are running into difficulties in communicating with the firm's customer service representative, you might consider contacting an estate planning attorney or securities litigation attorney.
Estate planning attorneys frequently deal with brokerage firms and retirement account custodians, and it could just be a matter of connecting to the right department to clear things up. Alternatively, if a firm is inappropriately withholding distributions to named beneficiaries, a securities attorney may get the firm's attention to take corrective action.
Good luck!
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
