Post # 1
Hostess
9686 posts
Buzzing Beekeeper
- Wedding: March 2014 - Chicago, IL
Father-In-Law passed away in January, and Darling Husband and Brother-In-Law are the beneficiaries. I’m wondering if anyone has experience with inheriting one – did you keep the money in an account (like an inherited IRA) or did you cash out? We want to invest, but aren’t really sure what our best option is. We are planning to meet with a financial advisor, but if you can offer any advice I’m all ears (or eyes I guess).
Another issue is the guy that works at Morgan Stanley hasn’t been helpful at all, and keeps trying to delay everything. He told us checks would arrive 2 weeks ago. Nothing. We called today and he said that he still needs us to sign something and he would e-mail it… but that the checks were most likely sent out last night but will take 10 days to arrive (wut?).
Does anyone know how long it typically takes to cash out an account? It’s verging on 2 months that we have been waiting, and I’m starting to get a bad feeling about the guy we are working with.
Post # 2
Member
1332 posts
Bumble bee
FutureDrAtkins: My experience is that the only benefits one can inherit, which would remain non-taxable is a life insurance policy, to my knowledge. Which means it is paid out without it adding income to the beneficiaries. Other accounts, such as (I believe) 401K, IRA’s, etc, can be paid out, but it would be considered taxable income for you, which is why it good practice to re-invest those investmentes; whether you transfer the monies into your own IRA, mutual funds, etc.
Definitely seek a financial advisor, who can best direct you, but make sure it is someone you trust, because you want someone who has YOUR best interest in mind, and not their own (because they too could have an agenda in mind…).
That sucks it is taking so long 🙁 There are many hurdles to jump over when dealing with someone’s money who is no longer here with us. My mom passed away in 2011, and we just finalized her money/funds, etc. It took us almost 4 years to go from point A to Z. Granted, most was completed within 6 months to a year, but there was still items out there that we spent many years investigating. “We” being my sister, who was her beneficiary.
So, hang in there, and be ‘careful’. It could be detrimental to have some of this be income for you, as far as tax purposes go!!! Sorry about your loss too 🙁
Post # 3
Member
162 posts
Blushing bee
FutureDrAtkins: Someone brought this up on a finance radio show today and the advice was to rollover directly in a Roth IRA. If you get it paid out to you, you will only get 80% of it, whereas if it’s rolled over, you get the full amount.
Post # 4
Member
180 posts
Blushing bee
I don’t know the answer but I thought I’d say the reddit personal finance thread is usually good for more unique situations like this.
Post # 5
Hostess
9686 posts
Buzzing Beekeeper
- Wedding: March 2014 - Chicago, IL
erosie: Thanks I’ll check it out!
KamerChick: Thank you, that is what I have heard/read.
OUgal0004: Good advice – we are meeting w/ a financial advisor in 2 weeks.
Hostess