Minor is benificiary on inherited IRA
Grandpa, who is now deceased, named his grandaughter as a benificiary on a traditional IRA. She is only 11 years old. No trusts or other documents. Want to create a inherited IRA for her. How do we do this?
Grandpa, who is now deceased, named his grandaughter as a benificiary on a traditional IRA. She is only 11 years old. No trusts or other documents. Want to create a inherited IRA for her. How do we do this?
Permalink Submitted by Alan - IRA critic on Thu, 2016-07-14 21:04
FIrst, check the IRA agreement. For example, Vanguard’s agreement contains a “Minors” clause within the “Designation of Beneficiary” portion of the agreement. This clause defines the options the custodian will accept to control the beneficiary IRA and what documentation the custodian requires for this. An UTMA agreement may need to be established with the custodian of that account authorized to receive any distributions.