Legal Question in Wills and Trusts in Florida
When someone passes away upon there death. How is the 401k handled? Will it go to the husband and not to the estate of the deceased? Do creditors have access to the 401k amount through the estate?
3 Answers from Attorneys
It depends on whether a beneficiary was named. If named the money goes there that person.
I agree with Mr. Stein above. Generally, 401k would be exempt from creditors. You should retain counsel however and have them look at all the documents.
I agree with the previous responses. It is important to name beneficiaries in 401k, life insurance, and other investment accounts. I recommend to not only name a beneficiary, but also alternate beneficiaries in the event the primary beneficiary dies before the person who owns the account. If there is no beneficiary named, then the account will need to go through the probate process.