This question concerns an IRA holding illiquid, hard-to-value assets that need periodic expenses paid by the IRA to avoid a problem with prohibited transactions.

The IRA owner currently transfers cash from one IRA to the IRA with the expenses to avoid holding a lot of cash. Currently the contingent beneficiary is the trustee of a trust FBO the kids. Looking at this approach I don’t believe non spouse beneficiaries would be able to keep transferring cash from one IRA to another. Am I correct on that assumption?

What I hope would work is that we name one kid out right to be the contingent beneficiary of both IRA’s and they would have these “inherited” IRA’s re-titled identically. Would they then be able to transfer cash from one IRA to another since they are titled identically? (This would not meet our original intent/goal for the beneficiaries, but the alternative is a very expensive liquidation of the assets.)