IRAdirect Death Claim Process Training Aid

Transcription

1 IRAdirect Death Claim Process Training Aid The death claim process begins when the financial organization is notified that the account holder is deceased. Legally, the notification can only be completed with the death certificate (either the original or a certified copy). If the financial organization receives a certified copy, it must contain the original seal of the government agency that issued the document. NOTE: The financial organization cannot accept a photocopy. After verifying the death certificate s authenticity, the financial organization should either keep the original or make a photocopy of the original and keep it with the account holder s records. At this point the financial organization will notify Ascensus of the account holder s death. This is done by completing the following steps. (1) Complete the Death Notice form wizard in IRAdirect. (2) Submit a certified copy of the death certificate. (3) Provide the most recently signed beneficiary designation that is on file (e.g. the Application or Beneficiary Designation form). The first step in the death claim process is to complete the Death Notice form wizard. NOTE: If the account holder has more than one account, the financial organization must complete a Death Notice form for each account. Ascensus and the Ascensus logo are registered trademarks of Ascensus, Inc Ascensus, Inc. All Rights Reserved.

2 Completing the Death Notice Form General The financial organization should provide the account holder s date of death and the account s value on the date of death. Also, the financial organization should indicate whether it has a current beneficiary designation on file. Family member, friend, or other person to contact for more information This provides a contact individual for the claim. Additional information Provide any other information that will help Ascensus process the claim (list of predeceased beneficiaries, updated beneficiary addresses, etc.) Traditional IRA distributions in the year of death This section allows the financial organization to submit the total amount of distributions that the Traditional IRA owner received in the year of death, including the amount withheld for federal and state taxes. This will help Ascensus determine if there is an RMD remaining. Financial Organization Authorization This section allows the financial organization to electronically sign the form. It also provides financial organization contact information. After completing the form, the user will print the form and to save it to IRAdirect. On the printed form, you will see that the financial organization will have already electronically signed the form. 2 P a g e

3 Once the Death Notice form has been completed and saved, the financial organization will fax the printed Death Notice form, death certificate, most recently signed beneficiary information, and any other related documents to Ascensus. On the success screen there is a link titled Preliminary Beneficiary Payment Election. This link provides the spouse who is the sole primary beneficiary with the option to complete the beneficiary payment election. To use this wizard, the following three questions must be answered Yes. 1. Is the deceased account owner s marital status listed on the death certificate as Married? 2. Is the deceased account owner s spouse listed as the only primary beneficiary? 3. Is the surviving spouse at least 21 years old? If the answer to all three of these questions is Yes, the financial organization can complete the surviving spouse s identifying information, print the Preliminary Beneficiary Payment Election form, have the beneficiary complete and fax it to Ascensus. 3 P a g e

4 Online Death Claim Resources Online resources to monitor the progress of the death claim and to replicate documents that were sent to contact individuals and beneficiaries of the account are available to the financial organization. The first resource is the General page. This page includes all information from the Death Notice form that was submitted. The General page also identifies the financial organization staff member who is responsible for the claim. It also shows the claim status (general or complex). The second resource is the Claim Status page. This page provides documentation resources involving the claim. It includes all letters that have been sent to the beneficiaries and financial organization. To reprint a letter, click the View link and print the.pdf. NOTE: The financial organization can reprint only the most recent version of the Beneficiary Payment Election and the Disbursal Authorization. The financial organization also can view a report of all open death claims. This report is titled the Death Claim Status Report. The death claim will remain on the status report until disbursals have been authorized and completed. 4 P a g e

5 The last resource is the Beneficiaries page. This page is used to view individual beneficiaries and their identifying information. Once the claim has been finalized, Ascensus will provide the financial organization with a Disbursal Authorization notification which provides an authorization to release assets to a beneficiary. If there are multiple beneficiaries, the financial organization will receive a Disbursal Authorization for each beneficiary, and the financial organization may pay out each beneficiary s portion. NOTE: The financial organization should not distribute the assets until it receives the Disbursal Authorization from Ascensus. By distributing the assets without authorization, the financial organization is subject to potential liability. Completing the Disbursal Authorization Once the financial organization receives the notification (by letter or fax) from Ascensus, it can then proceed to IRAdirect to complete the authorization online. To access the disbursal authorization it is done through the Approve Existing Forms queue. The user will click the Edit Transaction link and be able to view a review of the distribution authorization (i.e. who to pay, what were the terms of the payment) 5 P a g e

6 The user will now enter the amount of the payment and the distribution date. After entering this information, the user will click on the Next link. The user will now see the Post screen, which allows for a final review of the terms of the distribution. The user can print a copy of the disbursal authorization with the withdrawal amounts filled in. After this step is completed, the user will then click Save to submit the completed authorization to IRAdirect. 6 P a g e