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Wondering if we can assign our children to be the beneficiaries of an inherited IRA instead of my husband? My father-in-law passed away and we would prefer to pass along the IRA to our children instead of ourselves. Thank you.
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I don't see why not unless there are some custodial issues if the kids are minors.

I would post your question over on the Retirement Investing board for some expert advice:

http://boards.fool.com/retirement-investing-100154.aspx

Fuskie
Whose knowledge of such things is hardly expert...

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yes, you can by filling out a few forms at the broker's office.

Allocate a percentage to each child. The children I believe have 5 years to take out all the monies.

https://www.google.com/search?q=child+inheriting+ira+from+pa...

Just a thought,

Quillnpenn -
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Wondering if we can assign our children to be the beneficiaries of an inherited IRA instead of my husband? My father-in-law passed away and we would prefer to pass along the IRA to our children instead of ourselves. Thank you.

Sorry, the other answers you got in this thread are incorrect. IRAs pass to the listed beneficiary. Only the owner of the IRA can change the beneficiary. Since the owner of the IRA (your FIL) is now deceased, he can't make any changes, so the listed beneficiary (your husband) will receive the IRA unless he disclaims it.

If your husband disclaims the IRA it will then be passed to any/all contingent beneficiaries that your FIL named. So if your FIL named your kids (and only your kids) as the contingent beneficiaries, then they would inherit the IRA.

If there are no contingent beneficiaries named, and your husband disclaims the IRA, then the IRA would revert to the estate of the decedent.

Note: The treatment above assumes that your husband is the only beneficiary of the IRA. If he is not the only beneficiary of the IRA and he disclaims his portion, his portion would be reallocated to the other beneficiaries.

AJ
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yes, you can by filling out a few forms at the broker's office.

Allocate a percentage to each child. The children I believe have 5 years to take out all the monies.

https://www.google.com/search?q=child+inheriting+ira+from+pa......

Just a thought,


Sorry, your thought is wrong. The link you gave provides no information on changing beneficiaries after the IRA has been inherited, because it's not possible. Only the owner is allowed to change the beneficiaries, and since the owner (the OP's FIL) is deceased, he can't do that any longer.

Ownership of the IRA does not change when it is inherited. The beneficiary is just that - a beneficiary, not the owner. Properly titled inherited IRAs should always have both the original owner's name and the beneficiary's name - something like "OP's FIL IRA (deceased xx/xx/18) F/B/O OP's DH, Beneficiary" or "OP's DH as beneficiary of OP's FIL"

AJ
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I don't see why not unless there are some custodial issues if the kids are minors.

The issue in this case isn't whether the kids are minors or not. (There are issues with minors inheriting IRAs, but they aren't pertinent in this case, since the OP's husband presumably isn't a minor.) The issue in this case is, only the owner of the IRA can change the beneficiaries. The owner (OP's FIL) is dead, so he can't make any changes.

The OP's DH is the beneficiary of the IRA, not the owner. There is a very large difference. If the OP and her DH wanted their kids to inherit her DH's portion of the IRA, they should have discussed that with the OP's FIL while he was still alive and able to make changes. If the children are minors, DH could have been appointed to be the custodian of the IRA for them.

AJ
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