A relative of mine is about to pass away...?

Question

He has some money in a retirement account, he has shown me that i will be the sole beneficary. Should I...

a) let him transfer the money to his checking account now and he said he would then write me a check for that amout

OR

b) wait until after he passes?

is there a better way??

Answer 1

If you do A, these might be a good idea if he really dies. If not, you have to return it. It will cost you applying the donor's tax rule accordingly (if there is such). Paper trail will be obvious

If you do option B, it is still okay because your are indicated as beneficiary. It may take some time if it goes to extra-judicial settlement if there are other claimants of the stuff. Plus it may cost you applying the estate tax rule of your state/country.

But if i were you, I'll settle for A. But, be sure not to spend it right a way.  

Answer 2

COOL, what will u do with the money?

what if he gets better?

i think u should do A. although it may be a lil disrespectful

Answer 3

   There could be serious income tax ramifications or penalties transferring a retirement account during the life-time of the account beneficiary.

      Wait patiently, quietly and respectfully.

Time will properly address your issues and resolve away any problems.

      

Answer 4

If you are the sole beneficiary wait until he passes. It's distasteful to have him  give the money to you now.

Answer 5

There are very serious tax consequences to retirement accounts.  Do not do anything now.  Take the time to get yourself educated about how these things work.  There is a great website with IRA advice, irahelp.com.  

In short, however, it is better for the money to stay in his name until he passes, and then when you inherit it, you do not cash it out.  Instead, you can either draw it out in little bits over the rest of your lifetime, so that it continues to grow and you only pay small taxes on it.

See a tax specialist before either of you does anything serious with the account.