Legal Question in Wills and Trusts in Michigan

My mother passed away a year ago and left her 401k to my father at that time he made us 5 siblings as benifisheries at 20% to each on his death. Hes diing of brain cancer now has a few days or possibly weeks. on monday my sister made arrangements to cash out the 401k to pay for upcomming care the value was 139,000,00 on cash out they paid 34,000,000 in taxes. should recieve check on wensday of following week. well in the mean time hes now expected to not live thru the weekend. can we stop the check and have it go to benifisheries or just let it come and do what with it?, and we as benifisheries do we have to pay taxes on ti again? Or should we pay his house off. then put it up for sale?


Asked on 9/01/11, 9:51 am

1 Answer from Attorneys
John Tatone John R. Tatone & Associates PLC

You asked many good questions. I would like to meet with you and your siblings to discuss the details. You will not have to pay taxes a second time on the same money. Now that it is out of the 401k its character has changed and the will or if no will, intestate succession statute applies (All of his children share equally) regarding all assets in his sole name that do not have a beneficiary. Do not put the money in an account that only has one sibling as beneficiary unless there is a written agreement to divide the money equally upon death. Contact me at 888-988-LAWS(5297) or johntatone.com

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Answered on 9/26/11, 6:02 pm


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