When a loved one passes away, it can be a difficult and overwhelming time for surviving family members. One of the tasks that often needs to be addressed is the distribution of the decedent’s assets. In Texas, if a person dies with a will, the will must be probated in order for the assets to be transferred to the beneficiaries named in the will. However, in some cases, the will is not probated and this can lead to issues with certain assets, such as IRAs. In this blog post, we will examine a case study to better understand the process and the implications of unprobated IRAs.
Facts & Procedural History
A father passed away 1.5 years ago, and his will was not probated because his wife, the mother, was still alive. The father had IRAs that were signed over to the mother, but there was a problem because the estate was not probated.
Probating the Will in Texas
In Texas, if a person dies with a will, the will must be probated in order for the assets to be transferred to the beneficiaries named in the will. This process involves filing the will with the appropriate probate court and following the court’s instructions for distributing the assets.
In this case, since the will was not probated, the IRAs would not be transferred to the mother as stated in the will. This could result in complications and delay in the distribution of the assets.
Transfer of IRAs to the Surviving Spouse
If the IRAs were signed over to the mother before the father passed away, the mother would have a valid claim to those IRAs. In this case, the IRAs could be transferred to the mother without going through the probate process. However, it is important to make sure that all necessary documentation is in order and that the transfer is completed correctly to avoid potential complications in the future.
Joint Ownership of IRAs
If the mother is listed as a joint owner on the IRAs, she may be able to access the funds without probating the will. In this case, the IRAs would pass directly to the surviving joint owner upon the death of the first owner, without the need for probate.
However, it is important to keep in mind that joint ownership may have tax implications and could affect the eligibility for certain benefits, such as Social Security or Medicare. It is recommended to consult with a financial advisor or tax professional to ensure that joint ownership is the right option for your specific situation.
In conclusion, the issue with the unprobated IRAs in this case can be resolved by probating the will or by consulting with a probate attorney to determine if the IRAs can be transferred to the mother without probating the will. It is important to take prompt action to avoid further complications and ensure the proper transfer of assets.
Probate law can be complex and confusing, especially during a time of loss. It is important to seek the guidance of a qualified probate attorney to ensure that the probate process is handled correctly and that the assets are distributed as intended. An experienced probate attorney can also provide guidance on the best options for transferring IRAs and other assets to surviving family members, taking into consideration the specific circumstances and goals of the estate.
By understanding the implications of unprobated IRAs in Texas Probate Law, families can better prepare for the distribution of assets and ensure that their loved one’s wishes are fulfilled.
Our Dallas Probate Attorneys provide a full range of probate services to our clients, including helping with transfers of IRA’s. Probate is what we do. Affordable rates, fixed fees, and payment plans are available. We provide step-by-step instructions, guidance, checklists, and more for completing the probate process.We have years of combined experience we can use to support and guide you with probate and estate matters. Call us today for a FREE attorney consultation.
Disclaimer: The content of this website is for informational purposes only and should not be construed as legal advice. The information presented may not apply to your situation and should not be acted upon without consulting a qualified probate attorney. We encourage you to seek the advice of a competent attorney with any legal questions you may have.