One person plan - Sponsor, Plan Administrator, Trustee and sole participant are all the same individual who has recently passed away. As a participant, he completed a beneficiary form listing his four children equally.

However, who now has the authority to execute those beneficiary distributions? Thinking in a larger plan frame of mind - the employer appoints the trustee and the plan administrator. Therefore, whomever has been given "responsibility" for this sole proprietorship in his estate would have to name a new trustee? Does anyone have any other thoughts on this?

Bonus question - any idea what type of documentation should be presented to the brokerage firm holding the assets to prove who the new trustee should be?

This seems like a reasonable and logical assumption.



I'll take a stab. I would provide the section of the plan document that authorizes the sponsor to appoint a trustee. I would also provide a signed copy of the document where the new trustee accepts appointment.

One other thought. A sole-proprietorship is the perfect example of why it is beneficial to name more than one trustee.

If he had a Will, then the person named as the Executor should have the authority to deal with the plan on all fronts. If no Will, then whomever qualified as the administrator/rix of the estate should be in the same position. As WDIK points out, follow the plan doc. re appointing trustees, plan administrator, etc..... If it's a prototype document, most prototype sponsors have dealt with this situation before.....

As a non-attorney, I'll add an uninformed personal opinion. A lot of plan documents are not terribly clear or specific in the situation you mention - most leave it to the "Employer" or "Sponsor" to appoint another Trustee/Plan Administrator. Of course, the Employer/Sponsor no longer exists. I was always under the impression (very possibly erroneous) that a court appointed successor would be required. But I'm sure some of the legal experts on these boards can give you a much more accurate response.