Naming a Minor as a Contingent Beneficiary
When a spouse is named as the primary benficiary and the three childern (one of whom is a minor) are named as contingent beneficiaries, who acts on behalf of the minor children? I am assuming it would be the guardian as named in the estate, but want to verify that this is correct. What if the person does not have a Will naming a guardian?
Permalink Submitted by Alan Spross on Tue, 2010-05-18 21:44
This can vary by IRA agreement and state law. For example, Vanguard’s agreement indicate they have discretion to allow the parent, guardian, conservator or other legal representative of the beneficiary, or a custodian under UTMA/UGMA acts.
Permalink Submitted by mk foss on Wed, 2010-05-19 23:31
I’ve always recommended that the IRA owner name someone to act as custodian under the state’s uniform transfers to minor’s act when selecting a minor as a beneficiary. Like this:
1/3 to my son, Junior and if he is a minor when he inherits I name my sister Sally to be his custodian under the California Uniform Transfers to Minors Act.