ERISA account participant died intestate spousal beneficiary served 850 petitions how to dismiss

Question

ca. probate administrator froze ERISA account that was distributed to spouse with no court order and no notification, the administrator already contacted the ERISA qualified account administrator vying for beneficiary status and Fidelity investments denied her and gave me the account saying i was 100% sole beneficiary according to plan documents

James L. Arrasmith · Answer

This is a complex legal situation involving ERISA (Employee Retirement Income Security Act) accounts, probate law, and potential conflicts between beneficiary designations and intestate succession. Let me break down the key points and provide some guidance: 
 
1. ERISA Account Beneficiary Designation: 
   - ERISA accounts typically allow the account holder to designate beneficiaries directly. 
   - These beneficiary designations usually supersede will provisions or intestate succession laws. 
   - If you were named as the 100% sole beneficiary according to the plan documents, this designation should generally be respected. 
 
2. Probate Administrator's Actions: 
   - The probate administrator freezing the account without a court order or notification may be problematic. 
   - Their attempt to claim beneficiary status with the ERISA account administrator (Fidelity) was apparently unsuccessful. 
 
3. 850 Petitions: 
   - In California, Probate Code Section 850 allows for petitions to determine title to property in certain circumstances. 
   - If you've been served with 850 petitions, it suggests the probate administrator is trying to challenge your right to the account. 
 
To address this situation: 
 
1. Gather Documentation: 
   - Collect all documents showing your beneficiary status, including any communications from Fidelity confirming your sole beneficiary status. 
 
2. Legal Representation: 
   - Consider hiring an attorney specializing in ERISA and probate law. This situation is complex enough to warrant professional legal assistance. 
 
3. Response to 850 Petitions: 
   - You'll need to file a response to the 850 petitions within the specified timeframe (usually 30 days from service). 
   - Your response should detail why the petitions should be dismissed, focusing on: 
     a) Your valid beneficiary designation under ERISA. 
     b) The primacy of ERISA beneficiary designations over state probate laws. 
     c) The lack of court order or proper procedure in freezing the account. 
 
4. Motion to Dismiss: 
   - Your attorney may file a motion to dismiss the 850 petitions based on lack of jurisdiction (as ERISA typically preempts state laws) or failure to state a claim. 
 
5. Communication with Fidelity: 
   - Keep Fidelity informed of the situation and any legal proceedings. 
   - Request that they maintain your beneficiary status and resist any attempts to freeze or redistribute the account without a valid court order. 
 
6. Potential Federal Action: 
   - If state court actions continue, your attorney might consider moving the case to federal court, as ERISA is federal law. 
 
Remember, ERISA's goal is to ensure that retirement benefits are paid to the designated beneficiaries. The fact that Fidelity has confirmed your status as sole beneficiary is a strong point in your favor. 
 
This situation requires careful legal navigation. While these steps provide a general roadmap, each case has unique aspects that need individual attention. Consulting with a qualified attorney is crucial to protect your rights and navigate this complex legal landscape effectively.

Q: ERISA account participant died intestate spousal beneficiary served 850 petitions how to dismiss