Can a individual set up a minor ira for a family member who lives overseas? The individual is a US Citizen and has US income paying US Taxes...instead of sending a check each year they want to fund an IRA for this minor. Can this be done?

The IRA can be set up for the minor ONLY if the minor has US income and pays US income taxes.

The individual in your example can establish an IRA for themself and name the minor as beneficiary, if that will take care of the need.