How are IRAs and Roth IRAs transferred to beneficiaries or through probate after the account holder’s death in North Carolina? - Pennsylvania
The Short Answer
In Pennsylvania, IRAs and Roth IRAs usually transfer directly to the named beneficiary and do not go through probate. If there is no valid beneficiary designation (or the beneficiary has died and no contingent beneficiary applies), the IRA may become payable to the decedent’s estate and then be handled as part of the probate process.
What Pennsylvania Law Says
Most retirement accounts pass by contract—meaning the account agreement and beneficiary designation control who receives the funds at death. Pennsylvania law generally treats beneficiary designations for retirement-plan death benefits as nontestamentary (not controlled by a will), which is why these assets typically bypass probate and are paid directly to the listed beneficiary.
The Statute
The primary law governing this issue is 20 Pa.C.S. § 6108.
This statute establishes that beneficiary designations for benefits payable upon or after death under retirement and other employee-benefit plans are not considered testamentary and are not subject to the rules that govern transfers by will.
Related concept: Pennsylvania also recognizes that certain “transfer on death” registrations are nontestamentary by statute. See 20 Pa.C.S. § 6409 (TOD registrations), which reflects the broader principle that some assets pass outside probate based on beneficiary form/contract.
If you want additional background on how beneficiary designations interact with probate, you may find this helpful: Does a 401(k) paid directly to beneficiaries stay out of probate in Pennsylvania?
Why You Should Speak with an Attorney
While the general rule is straightforward, applying it to a real estate administration is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Beneficiary claims, tax elections, and required distributions can be time-sensitive, and delays can create avoidable costs or disputes.
- Burden of Proof: If the beneficiary designation is missing, outdated, or contested, you may need documentation from the custodian and proof of death/identity, and disputes can escalate quickly.
- Exceptions: Issues like a predeceased beneficiary, divorce-related disputes, creditor claims, or an IRA that becomes payable to the estate can change whether probate is involved and how the funds are ultimately distributed.
Trying to handle this alone can lead to avoidable delays, family conflict, or mistakes that affect taxes and distributions. A probate attorney can coordinate with the IRA custodian, confirm whether the account is truly nonprobate, and protect the estate and beneficiaries if a dispute arises.
Get Connected with a Pennsylvania Attorney
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.