If an account owner dies, what happens to the plan assets? Who controls them?
An account owner may designate a successor account owner who will become the account owner, subject to rules established by the Board, if the original account owner dies. The account is not an asset of the original account owner’s estate. In the event that the account owner dies without designating a successor account owner, the account will be transferred to a new account owner in accordance with his or her will and the law of the state of residence of the original account owner. Please consult your tax advisor. If the account owner dies without a will and/or without naming a successor account owner, ownership would be subject to the state laws in which the account owner resides. Enforceability of successor account owner agreements varies by state.
