Does my sister exclusively inherit the IRA if she's the beneficiary?

Full question:

My mother passed away and left her residuary estate to be divided between siblings. On my Mother's IRA/Brokerage Account my sister was listed as the beneficiary. Since my sister was listed as the only beneficiary on this account does this mean that the proceeds are not part of the residuary estate and therefore to my sister exclusively?Thank you

Answer:

Assets like IRAs and brokerage accounts can pass outside of probate if a beneficiary is designated. If your sister is the sole beneficiary on your mother's IRA, the funds will go directly to her and are not part of the residuary estate. This means she inherits those proceeds exclusively, separate from any distribution among siblings outlined in the will.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

No, if a beneficiary is designated on an account like an IRA, that beneficiary does not have to split the proceeds with siblings. The funds go directly to the named beneficiary, separate from any other estate distributions.