irrevocable contingent beneficiary??
I have a 76 yr old client with a blended family. Wife is 66. Three kids -all grown. Two by previous marriage, one with current spouse. He wants to name wife as beneficiary of his large ($1.1mm) IRA but wants to prevent her from naming anyone other than the children (such as a prospective new husband) as her beneficiary should he precede her in death. Other than a trust I don’t know of any beneficiary arrangement that can accomplish this. Is there another way?
Thx,
LB
Permalink Submitted by mk foss on Wed, 2013-10-23 16:25
The contingent beneficiary will inherit IRA benefits only if the spouse predeceases or disclaims. The trust will work. Other choice would be to set kids inherit part of the IRA when he dies so that not all of it could be lost to an unrelated beneficiary named by the spouse after he dies.