When you die, the money in your TSP will go to the person you designated as your beneficiary. If you are unsure as to whom your beneficiary is, you can check your TSP account to find out.
What if you didn’t designate anyone as your beneficiary, or the person (or persons) you designated pre-deceased you?
The TSP will follow the standard order of precedence for federal benefits, which is:
- Surviving spouse;
- Child or children in equal shares (this will not include stepchildren unless they have been formally adopted);
- Parents;
- Executor or administrator of your estate;
- Next of kin as determined by the law of intestacy in the state that was your legal residence at the time of your death.
The TSP will not follow any wishes you express in a will or a trust; they will only follow your designation of beneficiary or the standard order of precedence. They will also resolve any court orders and outstanding loans before making any beneficiary payments. Expect 30 to 60 days for the Thrift Board to make any payments to beneficiaries.
