IRA beneficiary designations are a confusing topic to many and it often takes coordinating with your financial advisor, your legal advisor/attorney and your accountant to ensure that your financial legacy passes properly to the next generation.
Because IRA distributions interact with but are not controlled by Will or Trust provisions, you should be careful to know the details on of your plan before filling out your beneficiary designation forms. You should also make sure that they coordinate with your overall estate plan. Finally, you want to be aware of the various of tax rules that impact IRAs.
It can be difficult to determine the best beneficiary option unless you have time to discuss your particular circumstances with a trusted advisor. Because the goal of an IRA is to defer the tax event as long as possible, age, health, estate value, and heirs can all impact who you want to name as a beneficiary. With this in mind, you will want to work with your planning team to examine the issues before completing the any beneficiary forms.
You also need to refer to the custodial agreement when drafting your designation forms to make sure that your designation says what you intend it to say.