Yes, we believe it would be advisable to ask whether the minor has been appointed a guardian by will, court proceeding, or state law before making a lump sum distribution. Additionally, you should review the IRA’s governing instrument to ensure that the IRA owner did not appoint a custodian or guardian to manage the funds for the benefit of the minor.

Under the Probate Act, an Illinois court generally does not have jurisdiction to appoint a guardian if the minor has a living parent (subject to certain exceptions). As you have indicated that the minor has a living parent whose whereabouts are known, we believe it is unlikely that the minor has been or will be appointed a separate guardian. However, we believe that to ensure that no guardian has been appointed, you should ask before distributing the IRA funds.

Additionally, you should review the IRA’s governing instrument to determine whether the IRA owner appointed a custodian, for example, under the Illinois Uniform Transfer to Minors Act, to manage the funds for the benefit of the minor.

If no guardian or custodian has been appointed, we believe it would be sufficient for the parent to sign all necessary IRA documents along with the minor before making the distribution.

For resources related to our guidance, please see:

• Illinois Probate Act of 1975, 755 ILCS 5/11-5(b) (“The court lacks jurisdiction to proceed on a petition for the appointment of a guardian of a minor if it finds that (i) the minor has a living parent, adoptive parent or adjudicated parent, whose parental rights have not been terminated, whose whereabouts are known, and who is willing and able to make and carry out day-to-day child care decisions concerning the minor, unless: (1) the parent or parents voluntarily relinquished physical custody of the minor; (2) after receiving notice of the hearing under Section 11-10.1 [755 ILCS 5/11-10.1], the parent or parents fail to object to the appointment at the hearing on the petition; (3) the parent or parents consent to the appointment as evidenced by a written document that has been notarized and dated, or by a personal appearance and consent in open court; or (4) the parent or parents, due to an administrative separation, are unable to give consent to the appointment in person or by a notarized, written document as evidenced by a sworn affidavit submitted by the petitioner describing the parent’s or parents’ inability to receive notice or give consent; or (ii) there is a guardian for the minor appointed by a court of competent jurisdiction. There shall be a rebuttable presumption that a parent of a minor is willing and able to make and carry out day-to-day child care decisions concerning the minor, but the presumption may be rebutted by a preponderance of the evidence. . . .”)

• Illinois Uniform Transfer to Minors Act, 760 ILCS 20/6(a) (“A representative, trustee or other obligor under a governing instrument may make an irrevocable transfer pursuant to Section 10 to a custodian for the benefit of a minor as authorized in the governing will, trust or other governing instrument. The authorization will be presumed unless the transfer is expressly prohibited by or inconsistent with the provisions of the will, trust or governing instrument.”)

• Illinois UTMA, 760 ILCS 20/2(14) (“‘Representative’ means an executor, administrator, general, temporary or limited guardian, successor representative, an obligor under a benefit plan or other governing instrument or a person legally authorized to perform substantially the same functions.”)

• Illinois UTMA, 760 ILCS 20/2(2) (“‘Benefit plan’ means any pension plan, retirement, death benefit, deferred compensation, employment, agency, stock bonus, option or profit sharing contract, plan, system, account, trust or individual retirement account. A benefit plan ‘obligor’ means the party designated under the plan to make distributions, otherwise the paying entity.”)