Naming Custodian to minor beneficiary
A client would like to name their minor child as beneficiary to their IRA. In that designation of beneficiary, they would like to name the custodian to the child.
Is there a law and/or regulation that would prevent someone from naming the minor’s custodian (for that IRAs purpose only) in the beneficiary designation? Could we accept this at our level as IRA custodian or would the client have to get some type of court approval?
Permalink Submitted by Al Fry on Thu, 2008-10-16 15:49
They would simply name a custodian under their State’s UTMA/UGMA. For example “Tonja Bowers, Custodian under IN UTMA, FBO Allie Sellers”. UTMA/UGMA=Uniform Transfer (or Gift) to Minor’s ACt; FBO=For the benefit of. The IRA trustee/custodian/carrier may suggest their preferred wording.
Permalink Submitted by charles lore on Fri, 2008-10-17 01:26
Further this is very state specific and custodian specific. Im sure there may be other ways but check with custodian. A problem with UGMA is that when kid is age of majority he controls. Do you want a 21 yr old..or younger controling a million bucks? 100,000?