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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.

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