Another question regarding wills and inheritance
This isn't for me, since we have only one son and he gets everything. Simple.
But a friend has a different problem. She has 3 children, the oldest about 52, the one who is the executor of her estate is about 50. My friend has a regular IRA thru Schwab, and was told that only one name can be on the account as her beneficiary. But I reminded her that the heir to an IRA must follow the same rules regarding withdrawing the money as the original owner. 59=1/2 years old or pay early penalty, must follow minimum distribution rules, and pay taxes on money withdrawn. So when her daughter's brothers come looking for that handout (and they will, which is why she's the executor), the taxes will all be on her when she liquidates to pay them off.
So if she wants to split the IRA evenly for all children, looks like she can't do that without the early withdrawal penalty.
I suggested that she ask Schwab about transferring her IRA into three separate equal IRA accounts, even if she has to go to separate institutions to do so. Then each child has their own share. And I told her to talk to her attorney, too.
What's right in this scenario?