Ask Ed Slott: Sharing an IRA Among Heirs

My wife and I have just one grandchild from one of our two sons (with no current plans for a second). The other son and wife are trying but no luck yet. After our passing, we would like our IRA and Roth IRA to be shared by all grandchildren -- probably equally. How can we accomplish this?
You could name your “living grandchildren” as beneficiary at the time of your death, but many financial institutions might not accept that vague beneficiary designation without your grandchildren’s specific names. Moreover, minor grandchildren cannot sign the necessary paperwork to open an inherited IRA, cannot manage the investments, and cannot request the required minimum distributions.
You may instead need to consider naming a trust for your grandchildren as the beneficiary of your IRAs. You should consult with a financial advisor on the best way for this type of asset to pass to a minor.

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