[Naming a child as beneficiary of a Roth account]

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Bogli
Posts: 21
Joined: Tue Jul 27, 2021 12:04 am

[Naming a child as beneficiary of a Roth account]

Post by Bogli »

Hello all ,

Trying to open a Roth IRA at Schwab. How do you name your child as a beneficiary for the Roth act at Schwab in a community property state ? What form is to be used for spousal consent to make the child as a beneficiary? Also is it ok to name minor child as the beneficiary?

Thanks for your help !

[Title edited for clarity -- mod oldcomputerguy]
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Lee_WSP
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Location: Arizona

Re: Beneficiary

Post by Lee_WSP »

They usually have a button/link to the form. It's a simple field. Just enter the childs name, dob, my child, and any other information they request. IRAs are not community property, but the funds used to fund it may be, so there's a potential equalizing in case of divorce.
whatdoIknow
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Joined: Thu Mar 25, 2021 5:37 pm

Re: [Naming a child as beneficiary of a Roth account]

Post by whatdoIknow »

i am no expert, but I dont think you can name a minor a beneficiary. I believe you would need some sort of trust and assign someone to manage this money until the child was an adult. then, the trust is listed as the beneficiary.
Topic Author
Bogli
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Joined: Tue Jul 27, 2021 12:04 am

Re: Beneficiary

Post by Bogli »

Lee_WSP wrote: Fri Oct 22, 2021 2:08 pm They usually have a button/link to the form. It's a simple field. Just enter the childs name, dob, my child, and any other information they request. IRAs are not community property, but the funds used to fund it may be, so there's a potential equalizing in case of divorce.
Thank you for the reply. There is a form for it however they say if you are n a community property state you need to name your spouse unless the spouse gives consent. I was looking for that consent .. is there a form for it ? I called Schwab however the person was not sure and said I just need alter from the spouse stating relinquishing 100% rights and upload it in the documents online. However I am not sure if that would be a legal binding document if just a letter .
Topic Author
Bogli
Posts: 21
Joined: Tue Jul 27, 2021 12:04 am

Re: [Naming a child as beneficiary of a Roth account]

Post by Bogli »

whatdoIknow wrote: Fri Oct 22, 2021 5:28 pm i am no expert, but I dont think you can name a minor a beneficiary. I believe you would need some sort of trust and assign someone to manage this money until the child was an adult. then, the trust is listed as the beneficiary.
Thanks !
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Lee_WSP
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Location: Arizona

Re: Beneficiary

Post by Lee_WSP »

Bogli wrote: Fri Oct 22, 2021 5:48 pm
Lee_WSP wrote: Fri Oct 22, 2021 2:08 pm They usually have a button/link to the form. It's a simple field. Just enter the childs name, dob, my child, and any other information they request. IRAs are not community property, but the funds used to fund it may be, so there's a potential equalizing in case of divorce.
Thank you for the reply. There is a form for it however they say if you are n a community property state you need to name your spouse unless the spouse gives consent. I was looking for that consent .. is there a form for it ? I called Schwab however the person was not sure and said I just need alter from the spouse stating relinquishing 100% rights and upload it in the documents online. However I am not sure if that would be a legal binding document if just a letter .
Well, that's a fun CYA procedure on their part...

From where I sit, here are your options. You could see a lawyer in your state and get a bulletproof answer, or you can follow what the CS rep suggested, or you can do some googling and find a community property disclaimer form, or you can spend even more time on the phone with them and try to figure out exactly what they want; although I'm sure someone else somewhere has had this issue and has posted about it online somewhere.
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