Payment of Death RMD to Minor Benmeficiary
An IRA owner stretches it by naming 3-year old grandson as beneficiary. Owner dies 5 years later at age 74 receiving RMDs. How are the RMDs payable until grandson turns 18 if grandpa’s beneficiary designation does not provide for this contingency? Will they be paid to grandson’s parent, to a guardianship established by the surrogate’s court in grandpa’s county, etc.?
Permalink Submitted by Al Fry on Thu, 2009-02-19 16:48
If GF has not yet died, it would probably be best to name a Custodian under the State’s UTMA. Otherwise a Guardianship may have to be established, which COULD be costly and cumbersome.