Investment & Retirement Accounts After a Death

Brokerage, IRA, 401(k), and pension accounts after a death: why the beneficiary form beats the will, and the inheritance paths for each.

What your family needs to know about brokerage accounts, retirement plans (IRA, 401(k), pensions), and employer stock after a loss. Beneficiary designations usually override a will; knowing who is named is the single most important fact here.

When to use this guide

Use this when the deceased held stocks, bonds, mutual funds, IRAs, 401(k)/403(b)/superannuation plans, pensions, or employer equity.

What you'll need

  • Certified death certificate (multiple copies)
  • The last beneficiary designation statement or the institution's records (the institution holds the official one)
  • Statement history to locate all providers; a transfer may have left accounts at several firms
  • Your authority documents if the estate, not a named beneficiary, is the claimant

Step-by-step

  1. Locate every provider. Brokerage statements, tax documents (1099s), employer HR records, and HeirloomFile entries. People often have orphaned 401(k)s at former employers: ask HR or payroll at any past employer.
  2. Find out who the beneficiaries are. For retirement accounts the beneficiary form, not the will, controls who inherits. If the deceased never updated it after a divorce or a child's birth, the default may surprise the family.
  3. Contact each institution. Each firm has an inherited-account team. You typically need: the death certificate, the beneficiary's ID, and a claim form. If no statements surface, institutions can also search via unclaimed-property offices or the US NAUPA database.
  4. Choose the inheritance path. Named beneficiaries usually can:
    • Take a lump-sum distribution (taxable for traditional and pretax accounts; income tax applies)
    • Roll over to an inherited IRA and stretch withdrawals over the required timeline (rules have changed over the years: check current law)
    • Spouses have additional options, such as treating the account as their own IRA
    Tax rules differ sharply between the US, UK, Australia, and other jurisdictions. Get the current rules for the relevant country.
  5. RMDs and tax. If the deceased was past required-minimum-distribution age, an RMD may be due in the year of death. Ask the institution what filings are outstanding.
  6. Pensions. Contact the plan administrator; many pay a surviving-spouse benefit. The deceased's employer HR is the entry point.

Common pitfalls

  • Assuming the will governs retirement accounts. It usually does not; the beneficiary form does.
  • Cashing out a large pretax account in one year and triggering a big tax bill without considering an inherited-IRA rollover.
  • Missing old employer plans or forgotten accounts. These become unclaimed property if never claimed.
  • Forgetting company stock / ESPP and unvested equity. HR handles these and the rules are plan-specific.

⚠️ Verification note: inheritance-tax and RMD rules have changed repeatedly and vary by country. Confirm current rules with the plan provider and a tax professional before taking a distribution.

A HeirloomFile entry records which providers exist and who to contact, so the family starts from a map instead of a pile of statements. Learn more.