[WSBAPT] IRA inherited by minor - guardianship/blocked account?

[Alison Warden]

Dear Listmates -

I have a question where a minor (age 16) inherits an IRA from grandmother.
Parents/natural guardians are alive and well. The financial institution is
unwilling to deal with parents in any form and refuse to title the IRA in
the minor's name. The solution appears to be guardianship to allow the
parents to manage the account, get it re-titled as an inherited IRA, and
receive the distributions of the RMD.

My question is: In such cases, would the court typically require that the
Inherited IRA be set up as a blocked account, *and* would there then need
to be a second blocked account set up to receive the RMDs?

Or, in your experience would the courts be willing to order the
guardianship with no blocked accounts?

This is the first time I have faced this scenario, so any input is welcome.

Thanks!

Alison Warden
Attorney
Lasher Holzapfel Sperry & Ebberson
warden at lasher.com
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