Consider Trusteed IRAs

If you’re considering leaving your IRA to your kids but worry they’ll blow the tax advantages involved, you might want to use a tool called a trusteed IRA. 

Trusteed IRAs are designed to provide for a long-term distribution plan for withdrawals.  By limiting withdrawals to a minimum amount, IRA owners can prevent beneficiaries from immediately spending down the accounts.  Trusteed IRAs may cost more to administer than plain IRAs, but they are cheaper than setting up a trust and less likely to run afoul of various tax rules.

See Kelly Greene, Trusteed IRAs Can Help Heirs Manage Inheritance, Market Watch, Dec. 19, 2013.