Can a husband and wife co own an IRA?

Patty: My husband has a 401k, and he said something about I'm not on that or something, or when he dies, it would just go over to me. Is that true?

Attorney Tom Olsen: Well 401ks, IRAs, retirement accounts, can only be in one name. So what he's saying is, "Yeah, the 401k is in my name only, but, Patty, what I've done is I've named you as a beneficiary of that 401k so that if I pass away, it will go to you. So 401ks, IRAs, can only be in one name, as opposed to a home or a bank account; those could be in both your names, but IRAs can only be in one person's name.

Patty: Okay. He said he put both our names on the other side. I just didn't know for sure, and I'm not-- no brain on that, so all righty. I thank you.

Tom Olsen: You're very welcome, Patty. I appreciate you calling.

Chris Merrill: Thank you, Patty, and, in addition, those accounts, as you mentioned, Tom, can only be in a single name.

Tom Olsen: Yes.

Chris Merrill: They cannot be joint. Versus other types of accounts, investment accounts, checking, savings, all of that. However, again, to confirm, if the individual does not name a beneficiary, it will go into probate.

Tom Olsen: Yes. The key there, Patty, is to make sure that your husband has named you as a primary beneficiary and, if you're you have adult kids, name the adult kids as a contingent beneficiary as a tool to avoid probate.

Chris Merrill: Exactly.

Tom Olsen: If you've got minor kids, Patty, then we need another plan. You'll still be named the primary beneficiary, but we need to set up a trust for the benefit of your minor kids and name your trust as a beneficiary. Patty, we hope that helps you out with that. Everybody, we want to thank you so much for all your great calls and questions and, of course, at the Olson Law Group, we do offer a free initial consultation to talk about your estate plan. We can do that free initial consultation by phone, in person, via Zoom, whatever is most convenient for you. We do Saturday appointments as well to make it nice and convenient for you. There are several attorneys here at the Olsen Law Group that are standing by to help you with that process, so you can call our main number 407-423-5561.

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