11 Grandchildren as Traditional IRA Beneficiaries
How complicated will it be for someone (executor?) to setup transfers to all eleven grandchildren individually named as beneficiaries in my traditional Vanguard IRA funds. I presently have four Vanguard funds one of which is Star Fund. I was thinking of moving the other three to Star which might simplify things. Their ages presently range from 25 to 5 years old.
Permalink Submitted by Bruce Steiner on Wed, 2013-05-22 03:49
It shouldn’t be difficult. Since there are named beneficiaries, the executor has nothing to do with it except to receive the information needed for the estate tax return. The beneficiaries will fill out the necessary paperwork. Since a 5-year-old might not be able to do this, you could either leave the IRA to the grandchildren in separate trusts rather than outright (if each grandchild’s share is sufficient to warrant administering a trust), or name a custodian under the Uniform Transfers to Minors Act for any of them who are minors.