In the case of death, do IRA proceeds go directly to the named benefic

[Guest Alex Anderson]

Two minor children are the beneficiaries of their mother's IRA. Their mother disappeared suspiciously and her sister petitioned the court to be Guardian of her Property. The children live with their father (who has full custody). The police have designated the case as a suspected homicide and the father has petitioned the court to declare the mother deceased (all parties reside in Maryland and there is no waiting period to declare a missing person dead, that is done by the courts). The sister, acting as Guardian of the Property, petitioned the court to pay the proceeds from the mother's IRA into Uniform Gift to Minor Accounts with the sister acting as custodian, in the event that the mother is declared dead. The mother has now been declared dead. She left no will and her debts exceed her assets.

Do the proceeds of the IRA go directly to the children, or do they go to the estate to pay off creditors? And what are the tax implications (the mother was 47 at time of death)?

[BPickerCPA]

You have to check with a local attorney. In many states, IRAs are creditor protected. I don't know the law in MD.