minor children and beneficaries
What are the issues that can arise when minor children are named as beneficiaries of a 401 K or IRA?
How should a minor beneficary designation be made? With a custodian or in trust or?
What are the issues that can arise when minor children are named as beneficiaries of a 401 K or IRA?
How should a minor beneficary designation be made? With a custodian or in trust or?
Permalink Submitted by Al Fry on Tue, 2007-10-02 21:50
Either can be used, however with the UTMA, the money becomes the child’s at age of majority. A trust would allow more control.
Permalink Submitted by Bill E. Brown on Wed, 2007-10-10 22:01
Thanks Al, but what are the problems that arrise if a minor is designated as a beneficiary to an IRA or 401K?
Permalink Submitted by Al Fry on Sun, 2007-10-14 20:32
Without a trust or use of UTMA, the court would have to appoint a Guardian, which can cause delays, and possible appointment of one not desired by owner.