There are two option when a child inherits a Traditional IRA. They can either take the entire thing out as a taxable event or designate it to be an IRA BDA (beneficial designated account). In an IRA BDA they can allow the corpus to grow tax deferred, while being required to take taxable distributions based off of their life expectancy. For a 52 year old child, this would equate to 31 years of life expectancy and a year one withdrawal of around 3%.