My dad had an IRA with my 2 children listed as beneficiaries. When he died in 2009 at age 64, the money was being held by a company in Maryland called Stifel. A few years later, for some unknown reason, Stifel sent the "unclaimed property" to the State of Oregon Dept. of State Lands. Oregon is now issuing checks from the IRA, which they took upon themselves to cash out, to each of my kids. How do I claim this money? Will I receive a 1099-R and have to pay capital gains or is it considered an inheritance and not taxable? Also, since the money belongs to my kids but the check is being issued in my name since my daughter isn't 18 yet, do I claim it on my taxes or do I need to do a separate tax return for each of the kids? I know this is a complicated question so thank you in advance for any help!!
