Can someone refuse primary beneficiary benefits and still accept benefits from an associated trust?

December 16, 2002

From:  Anonymous
Date:  Tue, 19 Nov 2002

My financial advisor just called me with an estate planning question. I am an estate planning paralegal, but I wanted to be sure about my answer.

His father died. He does not have a taxable estate. He left his 401(k) to his wife, my friend's mother. She is primary beneficiary and the trust is the secondary beneficiary. If she disclaims the funds and they go into the trust, can she received benefits from it?


Date:  02 Dec 2002


Yes. However, there are a number of side issues involved in your question. I recommend that your friend consult with a tax advisor familiar with the issues for retirement plan distributions after a death.

Good luck!
Mike Gray

For answers to new questions, subscribe to our newsletter, Michael Gray, CPA's Tax & Business Insight by filling out the form below.

Home    Newsletter Archive    Introducing Michael Gray, CPA    Articles    Tax FAQ   Need Help?    Other Links

Michael Gray, CPA
2482 Wooding Ct.
San Jose, CA 95128
(408) 918-3162
FAX: (408) 938-0610
Hours: 8am - 5pm PDT Monday - Friday

Find us on Facebook
Follow me on Twitter
Connect on LinkedIn
Connect on Google+
Our Blog

Subscribe to Michael Gray, CPA's
Tax & Business Insight

We respect your email privacy