Payee’s Estate’s Ability to Make Claims

Payee’s Estate’s Ability to Make Claims
Unless otherwise extinguished by language included in the settlement agreement or the judgment of divorce, unpaid property settlement debts and retirement benefits from defined contribution plans which have not yet been disbursed to the payee at the time of the payee’s death are assets of the payee’s estate and may be collected from the obligor by the personal representative.
The alternate payee’s right to receive the benefits awarded to him or her from a defined contribution plan does not terminate on death. The QDRO for a defined contribution plan should include the paragraph:
If the Alternate Payee dies before all benefits awarded to the Alternate Payee have been paid under this order, the remaining benefits payable to the Alternate Payee will be distributed in a single lump sum, as soon as administratively possible following the Alternate Payee’s death, to the beneficiary or beneficiaries designated by the Alternate Payee in writing to the Plan Administrator. If no written beneficiary designation form has been filed, the benefits will be paid to the estate of the Alternate Payee. WWW.ATTORNEYBANKERT.COM