Who gets your IRA when you die? It’s not so simple

Q.: I’m leaving my IRA to my son and daughter 50/50. What happens when one of them dies? Will my grandchildren get the funds? I have four grandchildren, two from each of my kids.

— Tim in Columbia

A.: Tim, what happens to the IRA money is dependent upon what the beneficiary designations say and when one of your children passes away. The beneficiary designation will dictate the outcome, not what is written in your will.

If your children are alive when you die and you simply named them 50/50 outright beneficiaries, they will each get half the funds and can do as they please including taking the funds in an Inherited IRA account and naming anyone they want as beneficiaries.

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