FIND THE SECRET TO PROTECT YOUR IRA ASSETS FROM BEING TAXED UP TO 70% Continued from Part 1
This is critical, and this is where your team of financial advisors, estate planning attorney and CPA’s/Accountants should be showing you how and why IRA assets are titled in a manner consistent with your intentions and goals. Many family’s and their financial advisors, believe that merely naming the children as IRA beneficiaries is sufficient to assure the stretch-out. STOP READING AND FIND YOUR BENEFICIARY FORMS THAT YOU SIGNED WHEN YOU SET UP YOUR IRA’S. CALL OUR FIRM TO SET-UP AN APPOINTMENT BEFORE IT’S TOO LATE.
If there was a way for you to ensure that your IRA’s, when properly inherited by your beneficiaries, were protected from a child’s divorce or mismanagement, wouldn’t you want to know about it? And what if there was a method to allow flexibility in your estate plan to allow your trustee to create additional protections, even after something unfortunate has happened, at the same time as allowing your children to have access for health, education, maintenance and/or support?
Assume the following facts: Mom is age 65 and has a $250k IRA, which includes money rolled over from her deceased spouse or from her own company retirement plan. We will assume that over time she enjoys 8% annual growth of the account. At age 70 ½ the account would be worth $396,000. If she starts taking her RMD’s (Required Minimum Distributions) the IRA will continue to grow since based on the tables as calculated by the IRS she only has to take out 4% (compared to the growth rate we’ve assumed at 8%).
This is continued in Part 3
This was posted by Attorney Joseph Dadich, on Feb. 14, 2008 at 8:06 am. You can reach me at http://www.1estateplanningmichigan.com
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