A: You have five basic options for naming a beneficiary of your IRA: your spouse, if married; your children, grandchildren or other individuals; a trust; a charity; or some combination of the above.
A: You will lose control of the distribution of the IRA at your death. The money may go to your estate, requiring probate, or to beneficiaries you may not prefer.
A: Yes. They will pay taxes at their normal tax rate, unless you create stretch IRA that may allow the IRA to continue to accrue tax free during the beneficiary's lifetime.