IRA Beneficiaries
My two daughters are equal primary beneficiaries of my IRA and they both have minor children. I have filled in the “per stirpes” box as my intention is for my IRA to go to my daughter’s heirs if either should predecease me in the event the bene form is not updated. My sister is the currently the contingent beneficiary.
If both of my daughters predeceased me, I would still want my IRA to go to my grandchildren equally. As a result, should I name my grandchildren contingent beneficiaries or will the per stirpes designation still pass the IRA to the grandchildren (or to the contingent beneficiary?) if my daughters are both predeceased?
Thank you.
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-31 18:30
Always read the IRA agreement beneficiary provisions when per stirpes is involved. For most IRA contracts, each daughter’s share would go equally to her children (your GC), and would not go to the other daughter unless there were no beneficiaries left. Your sister would not inherit unless all others had passed, and that appears to be a very remote possibility unless the others all travel together. If the agreement is not clear, call the custodian for clarification and if it is clear be sure that the outcome is what you want.
Permalink Submitted by Bruce Steiner on Sun, 2020-02-09 01:47
Write “see attached rider” for the beneficiary on the beneficiary designation form. Date and sign the form. Attach a rider on which you say exactly what you want. Date the rider (the same date as the form) and sign the rider.