You should try to limit the number of custodians because each IRA custodian is different and in order for you to remain current on the new rules and regulations, you must remember that each of the IRA custodians may or may not be current on all the tax laws. The more custodians that you have, the more work you will have to do in order to determine whether or not they are up-to-date.
Imagine if you have 10 IRA custodians, you would have to review 10 different custodial accounts and keep current on each of these changes as the IRA custodians make them!
Many IRA custodians may not allow you to implement your desired plan. If they are not flexible, then it is time to switch. Many beneficiaries are not aware that they do not necessarily have to put up with the prior owner’s custodian. The IRA can usually be transferred from one custodian to another IRA custodian without any tax consequences.
Adapted from MD Producer