How are retirement plans (defined contribution and defined benefit) valued in a decedent's federal estate in California if the surviving spouse has a community property interest in the plan? Assume that the surviving spouse did not marry the decedent until years after the retirement plan was created and contributions and/or service and earnings credit commenced.
To calculate the spouses' interests in property in general, one spouse's interest in another spouse's retirement plan is based on the percentage of time they were married compared to the amount of time the working spouse had contributions made to the plan. But if the assets in the retirement plan go to the surviving spouse it's irrelevant because of the unlimited marital deduction.
There are beneficiaries on some of the retirement accounts that are not the spouse. Your answer is the method used for divorces. I had an inkling that the same method would be used for estates but I needed to hear an "expert" tell me.
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