minor great grand children inheritance

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
piton
Posts: 24
Joined: Sat Nov 24, 2018 7:11 pm

minor great grand children inheritance

Post by piton »

As an executor of a trust, do I have any say in how to handle disbursing the inheritance of great grand children that are minors. There are two parts, an IRA and cash.

I think it’s a good time for a minor to start an IRA, in this case it would be an inherited IRA rather than just cash out. For non-IRA liquid assets, I would really like to see the assets/cash go into an UGMA account or something similar. I’m guessing that the most that I can do is make suggestions.

Any ideas appreciated!
bsteiner
Posts: 5133
Joined: Sat Oct 20, 2012 9:39 pm
Location: NYC/NJ/FL

Re: minor great grand children inheritance

Post by bsteiner »

Does the Will authorize you to distribute to a custodian under the Uniform Transfers to Minors Act? If not, does the UTMA of the decedent's home state, the custodian's home state or the minor's home state allow it? Some states allow it absent authorization in the Will up to a specified dollar amount.

As to the IRA, does the beneficiary designation form so provide? If not, will the IRA custodian allow it?
NotWhoYouThink
Posts: 3174
Joined: Fri Dec 26, 2014 4:19 pm

Re: minor great grand children inheritance

Post by NotWhoYouThink »

Estates have executors.
Trusts have trustees.

Read the documents involved (Will, trust, beneficiary designations on accounts) and clarify your question.
stan1
Posts: 8891
Joined: Mon Oct 08, 2007 4:35 pm

Re: minor great grand children inheritance

Post by stan1 »

What are the amounts in question? I would probably try to handle $5K, $50K, and $500K differently (depending upon the flexibilities I had as the trustee). Also if there were 20 great grandchildren in a dozen states I might not put that much effort into it.
Post Reply