Have You Disinherited Your Grandchild(ren)?

Is your adult child(ren) a beneficiary on your beneficiary designated accounts like an IRA?

Do they have children?

If so, you may be disinheriting your grandchildren if your child should pre-decease you. 

For example, Joe’s two children, Jack and Jill, are primary beneficiaries on his IRA.  

Jack doesn’t have any kids and Jill has two. 

If Jill predeceases Joe then Joe dies, her share will go to Jack not to her two kids. 

If Joe doesn’t want to disinherit his grandchildren, he should write Per Stirpes on the beneficiary form next to Jill’s name. 

Now, if Jill predeceases Joe then Joe dies, her share will go to her two kids not to her brother, Jack.  

This would apply to any beneficiary designated account such as annuities, life insurance, retirement accounts and Transfer on Death (TOD) or Pay on Death (POD) accounts.