IRA at Death
Hi Terry:
My wife and I each have IRA’s in our own names. What happens if the other person passes? Does the remaining spouce have acess to the money upon death, or does it need to be rolled into an IRA account? Can the IRA money be used for funeral expenses etc?
Terry Says
You must immediately contact each of your IRA custodians and ask for a “beneficiary form.” It’s simple to do. You each will name each other as primary beneficiary — who will get access to the money at the death of the owner, simply by providing a death certificate. The beneficiary will pay taxes on any money withdrawn. And it can be used for any purpose.
You also might want to name an adult child as “secondary beneficiary” — in case your spouse is deceased when you die.
