Solutions 4 Financial Independence: 9/25/18

Published: Sep. 25, 2018 at 8:14 AM EDT
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Question 1: My mother passed away a few months ago, we are in the process of handling her probate. Do her IRA accounts have to go through probate?

John Halterman Answer: You know, probate is a big deal, because probate is basically the proving of your estate after a person passes away. So what happens is you have to go to the courthouse, the courthouse announces that you’re going through the probate process, because the person passed away, and then anyone who wants to make a claim against that state, has the full opportunity to do that. Some assets will be probate-able, and some assets will not be probate-able. And assets such as an IRA, have a direct beneficiary, and because it has a direct beneficiary, it does not have to go through probate. All you have to do, is contact the company, make a death claim, they will give you options, such as you can cash the money out, or you can put it in an inherited IRA in your own name. But either way, no probate on the IRA.

Questions 2: Are there other types of assets that could be probate-able?

John Halterman Answer: Absolutely, you know, things such as a person's home, things such as your savings account, or non-qualified accounts that do not have a direct beneficiary. So if you do not have a direct beneficiary, that assets is going to be probate-able, and if you do have a direct beneficiary tied to the account, than that asset can be settled by a death claim.