The Challenge

While a well-prepared estate plan is one of the best ways to minimize the need for probate, challenges can still arise. 

In this case, the decedent had left behind a comprehensive estate plan that included a trust, a durable power of attorney, an advance healthcare directive, and a pour-over Last Will and Testament. However, he had inherited his late wife’s IRA and never updated or completed the beneficiary designation before his death. This created a roadblock for his children as they dealt with his estate. 

The company in charge of the IRA refused to administer it without a formal Estate and “Letters of Administration” or “Letters Testamentary.” This meant that probate was now required to administer this asset, despite their father's detailed preparations.

The Solution

To enable the family to collect the IRA, Harbor Probate Law stepped in to assist in petitioning for probate of their father’s Last Will and Testament. As part of the process, we negotiated with the IRA’s custodial company.  According to California law, each custodial company is able to set their own internal policies for administering assets. We worked to convince them to allow the direct heirs to inherit the IRA, however their inflexible policies meant this avenue was unavailable.

The Result

Despite these obstacles, Harbor and the Executor completed the probate successfully. Following a detailed final accounting and Order for Distribution, the custodial company released the IRA and we ensured the rightful transfer of all the family assets to the children. We managed to not only secure the IRA, but also another retirement asset. What seemed like a roadblock was overcome with expert navigation, making the process less burdensome for the bereaved family.