How to Leave IRA Benefits to a Minor
An IRA is an Individual Retirement Account. These accounts provide money to you and your spouse during your retirement. The account is an investment account. Inside the account, you invest in a variety of investment products ranging from stocks to bonds to mutual funds and even precious metals and real estate. If you don't use all of the money prior to your death, and you have no spouse to leave the money to, then you can leave the money to a minor child.
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Instructions
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Gather account information. Contact your brokerage or insurance company. Request a beneficiary form for your IRA. The brokerage will send this form to you by mail.
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Appoint a financial guardian. You'll need a financial guardian to watch over the assets of the minor until your child is old enough to manage the money himself. A court will appoint a financial guardian for you if you don't do this during your lifetime.
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Name your child as the beneficiary for your IRA. You'll name your child as the beneficiary when you fill out the forms to change or add a beneficiary to your IRA. Obtain these forms from the financial institution that holds your money.
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Tips & Warnings
You'll need to speak with a lawyer to fill out any legal paperwork associated with appointing a legal and financial guardian. Normally, this involves adjusting your will to provide for a legal and financial guardian for your child.
Even though your child is the named beneficiary, the financial guardian will manage the funds until your child is old enough to enter into contracts with financial institutions.
Do not name the financial guardian as the beneficiary as this means the financial guardian keeps the funds regardless of how old your child is. The financial guardian should only act as the temporary custodian.
