IRA designated Estate as beneficiary - any way the 4 heirs get to use it as an inherited IRA?

[Greta]

Decedent left IRA (1/2 mil) to Estate. Estate heirs are 4 minor grandchildren. What is best way to distribute. I assume inherited IRA rules do not apply.

[BobKamman]

Others may post that was a really dumb thing to do, so I will suggest that the decedent knew exactly what (s)he was doing.  What does the will say about distribution to the minors?  (If there is no will, then that was really dumb.)  Does it create a trust with provisions on when the kids get the money, and how much?  If not, then there will probably be conservators involved who can make decisions on that.  Yes, it's often possible in these situations to still follow the "inherited IRA" rules.  

[qbteachmt · Accepted solution]

"What is best way to distribute. I assume inherited IRA rules do not apply."

If the estate directs the brokerage or holding entity to distribute the account(s) directly as IRA, on behalf of minor children, then that is Inherited IRA.

If, on the other hand, the estate closes out the account(s) and distributes (or has the broker distribute) the proceeds, that is an inheritance, but not an IRA.