You can name a trust for your grandchildren as the beneficiary of your Roth IRA. Beneficiary distributions to the trust will be tax free 5 years after your first Roth contribution was made. Unless a GC is disabled or chronically ill, the inherited Roth will have to be distributed within 10 years (10 year rule). Estate or GST tax depends on the unified credit in the year of your death, and how much is left to other than your spouse. State estate tax law varies widely between states.

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