My mother had IRA accounts with a local credit union. Initially, she designated her trust as the beneficiary. A month prior to her death, I accompanied her to the credit union where she requested to change the beneficiary to just me. The representative looked at her ID as well as my ID and made the change in the computer system.At her urging, he provided her a print-out of her accounts, showing that I was now the sole beneficiary on her accounts. She had him sign and initial the print-out, which I have.
When I went to roll-over the accounts into an inherited IRA, the credit union said that they will only make a distribution to the trust (the original beneficiary) despite the fact that I am listed as the beneficiary in their system and have the signed form showing the change. My options?
Chapter 7 Bankruptcy Attorney
You need to discuss this matter with an attorney. I think what has happened is that the Credit Union has some doubts about your mother's mental capacity to make the changes and that they are going to be sued, either by you or the trustee/ trust beneficiaries. From the Credit Union's point of view, it is better to be sued by you while they still hold the money or let you sue and the trust at the same time. They do not want to be in a situation where they pay out and the funds are gone and they have to dig into the Credit Union's assets to pay up.
Estate Planning Attorney
Mr. Carroll offers a good answer. Probably due to the proximity of the change to her death they became wary. I know lawyers say this alot - but get a lawyer to write a letter for an explanation as to why they will not honor the change. I just don't think, based on experience, that the bank will respond to you with out a lawyer. I suppose there is a difference between the ultimate beneficiaries if it goes to the trust versus the change?
This is not legal advice nor intended to create an attorney-client relationship. The information provided here is informational in nature only. This attorney may not be licensed in the jurisdiction which you have a question about so the answer could be only general in nature. Visit Steve Zelinger's website: http://www.stevenzelinger.com/
Estate Planning Attorney
I agree that you should consult with an estate attorney as soon as possible to discuss the issue with the credit union. I regularly practice in this area of law in MD and would be happy to speak with you. I can be reached (301) 850-3387.
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