If your Mom's income tax bracket is lower than yours, consider Roth conversions now and then you can inherit those. Or, split the IRA into two accounts, one of which is just the right size for your two children to spread out over 0 years and pay minimum tax, the other IRA goes to you or you convert it or whatever. Also note, once they are 16 or thereabouts, they are likely to have earned income which will allow higher non-kiddie-tax withdrawals. Lots of options and levers to pull here.
Since 50% goes to someone else, if you keep it in one account (most likely for flexibility), then suggest 50% "other heir", then to you and your kids in whatever percent makes sense. As they get closer to 18 and/or their earned income picks up, or the 10 year window begins to touch on a reasonable date for them to not be dependents, you could revisit.
Statistics: Posted by CAsage — Sun Apr 21, 2024 9:12 pm