Trust to pass roth IRA to minor Grandchildren

Submitted by Mohammad Rafiq on Tue, 2017-11-07 17:24

I would like to leave my Roth IRA to my Grandchildren who are minors. First should one set up a separate trust for each of them or one trust for all of them.
I expect that only Required Minimum Distribution will be taken out of the IRA so that there will be funds in the trust when all of them become adults. Can the remaining funds be transferred to their own IRAs? If not, can each of them become trustee of his own trust?



Submitted by Steve Hagedorn on Tue, 2017-11-07 18:58

You, as the owner of the Roth IRA do not have RMDs to claculate & distribute at 70.5 of age or later. If this is a Roth 401(k) IRA than there will be RMDs to distribute. I do not have any expertise in the setting up of Trusts or how an Inherited Roth must be distributed. Hopefully others can help.

Submitted by Bruce Steiner on Mon, 2017-11-20 22:13

If you want to provide for future grandchildren, then you would have to either create a single trust that will divide at a time when you’re confident you won’t have any more grandchildren, or else provide that if an additional grandchild is born or adopted, a new trust will be established for the new grandchild, with a pro rata share of each of the existing trusts.Bruce Steiner

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