Minor children as contigent beneficiaries
When IRA owner designates beneficiaries – spouse as primary and minor children as contingent beneficiaries, should a custodian/guardian be named with each minor child’s name on designation form? AND for example if both parents die and minor children inherit IRAs, do each of the IRA custodians (i.e. bank, mutual fund, clearing firm) of IRA accounts have different requirements for minor children?
Permalink Submitted by Alan Spross on Thu, 2007-09-27 04:07
They may have different processing or administrative requirements, but state laws come into play with respect to proper guardianship for the minors. Often the states UTMA/UGMA provisions are incorporated. The above administrative issues must observe the referenced state laws of the state of the minor’s residency.