survivorship clause

Very few articles about IRA’s discuss survivorship clauses, defaulting back to common disaster thoughts, that have very short times frames. What are the pros/cons of including something like: “If any beneficiary fails to survive me by 30 days, I shall be deemed to have survived such person(s).” This seem especially important to me in a spousal situation ,or any I guess, to ensure that the survivor has time to create their own beneficiary designations, thus allowing the longest possible payout shedules. Thoughts?



The issue comes up primarily in the case of a spouse.

In the case of a spouse, you might not want to require that the spouse survive for a specified period to get the IRA. The spouse has to be treated as surviving if you want the marital deduction, or if you want the spouse to be able to do a rollover and name new beneficiaries.

If the spouse is treated as surviving, but you don’t want that result, the spouse’s executors may be able to disclaim on the spouse’s behalf, though in some states this may require court approval.

The above is intended as general information, not as specific legal advice. If you have a specific case in mind, you should consult with your own attorney, who can give you specific advice based upon your particular situation, and your objectives.



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