How To Leave Retirement IRA Fund To A Friend

By: Joe Andrews

Break Studios Contributing Writer

If you want to make sure that the dollars you worked hard to accumulate stay with someone special when you pass away, knowing how to leave a retirement IRA fund to a friend is nearly as important as actually funding the retirement account. Leaving your retirement IRA fund to a friend is simple; once you’ve decided which friend deserves to claim your riches when you’ve passed away, it’s a quick matter to complete the paperwork appropriately. From that point on, if you choose, you can remind your friend that he's in your debt, and hold it against him whenever everyone’s deciding whose turn it is to buy dinner. Here are the steps, in detail, to successfully leave your IRA to beneficiaries:

Find out your friend’s personal information. Many beneficiary forms ask for a full name, Social Security number, address and birth date. Having this information ahead of time will save time during the process. Your friend's information should be filed with your estate planning paperwork, such as your will.
Decide on contingent beneficiaries. An often-forgotten step is to figure out who will receive your funds if your friend passes away before you do. This step is especially important if your stated beneficiary is your age or older, because there is a fair chance he may predecease you.
Visit your IRA provider's website or office for paperwork. Ask your provider for the appropriate forms to leave your retirement IRA to a beneficiary. As described above, this form will ask you for the full names of the individuals, and probably other personal information. This is to resolve any potential disputes about who was intended.
Complete the paperwork. You’ve already made all the decisions. Fill out the form and quickly return it to your retirement IRA provider.
Wait for verification. Your IRA provider should verify in writing that you’ve successfully left your IRA to your friend. If a few weeks pass without notice, call your provider to ensure you’ve successfully completed the process.