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You would hope that the IRA would be used by your grandchildren for worthwhile purposes...but once they reach the age of majority in your state (18 to 21), the IRA will be their inherited IRA from which to withdraw as they see fit.

You could create 529 plans for each grandchild and gradually withdraw from the IRA over the years ahead and then contribute this to each 529, naming your children as contingent beneficiaries to the 529s. This would create taxable income to you in the year of IRA withdrawals, but would resolve any spendthrift issues you might have.

There may be a way to create a testamentary trust in your future estate to direct IRA RMDs to the grandchildren's 529 plan or to a spendthrift trust....but this would get a bit costly, and I'm not sure if this would even be possible in your state. You'd need to check with a local estate planning attorney.

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