Designating beneficiary %

Submitted by Bob Modesti on Fri, 2017-03-03 22:19

My client wants to name 8 grandchildren as beneficiaries with equal distribution on his death. Can each child be given 12.5% or is it best to use whole number percentages? (i.e. 4 at 12% and 4 at 13%).

What effect, if any, would either way effect Multi Generational IRA distribution?

Thank you.



Submitted by Alan - IRA critic on Sat, 2017-03-04 01:40

Client should call the custodian and explain that he wants to leave 8 equal shares, and ask them how this should be stated in the beneficiary clause. Leaving anything other than 1/8 or 12.5% will simply result in a slightly uneven inherited share.



Submitted by Steve Hagedorn on Sat, 2017-03-04 13:19

When that many (in this case, 8) beneficiaries to be equally recorded why not consider using the term “per stirpes” or “per capita” depending on the IRA owner’s wishes?

  • Here’s an explanation of these two terms:


Submitted by Bruce Steiner on Sun, 2017-03-05 00:04

  • What happens if one of them predeceased the IRA owner?
  • What happens if another grandchild is subsequently born?
  • The lawyer should know how to draft it.
  • Bruce Steiner, attorney, NYC, also admitted in NJ and FL


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