minor as beneficiary

I have a client who passed away naming two grandkids (minors) as beneficiary of her IRA. The mother came in demanding that we give the money to the kids with her as custodian. Mother/father are divorced. Would we need a court appt for guardian?



Possibly. There is no uniform procedure since the laws with respect to minors varies by state, and possibly even on a more local basis in certain cases. Particularly in a divorce situation, the funds should not be distributed until it is clear which parent has financial custody. In some cases, a guardian must be appointed that is not necessarily either of the parents. There should be no problem with excess accumulation penalty waiver if an RMD distribution is held up pending resolution of the custodial question.



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