IRA beneficiary designation
I have a client who would like to name her husband as primary beneficiary on her IRA and her 3 children as contingent beneficiaries. The husband has 3 children of his own apart from her 3 children. She wants to make sure that after she passes, the money goes to her husband. However, she wants to make sure that after her husband dies that her 3 children would get the assets (not his 3 children). It’s my understanding that once she passes away and the husband receives the assets, he could name any beneficiary he wishes (leaving her 3 children out) if he so desired. Is there a way to set this up using just a beneficiary designation form or would she need to get some trust work done and name the trust as the beneficiary?
Permalink Submitted by Alan - IRA critic on Thu, 2015-03-12 18:59
She needs a trust, typically a QTIP trust, to be named as the IRA beneficiary. That will protect the interests of her children, and still provide a source of income to her husband while he is alive.