Your Individual Retirement Account (IRA) may be one of your largest assets. Its primary role is providing income for your retirement. However, a significant amount of seniors will pass away with their IRA still intact and their Retirement Plan/IRA will pass to their loved ones or the IRS if they don’t plan. What can you do to ensure your IRA assets pass to your loved ones?
Consider using an IRA Trust. An IRA Trust is a special type of revocable living trust designed for the sole purpose of holding your IRA accounts for the benefit of your loved ones after your death. An IRA Trust is a Revocable Trust which allows you to maintain full control of your IRA while you are alive and then to control and protect the distribution of your IRA to your beneficiaries when you pass away.
Naming an IRA trust as beneficiary will give you maximum control over your tax deferred money after you die. That’s because the distributions will be paid not to an individual, but into a trust that contains your written instructions stating who will receive this money and when. An IRA Trust provides you with control of the distribution of your IRA to your beneficiaries to preserve taxes and provide your heirs with a lifetime of income. Most beneficiaries of an IRA simply take a full distribution and are thus subject to higher income tax for that year and hand over a significant portion of the IRA’s value to the IRS.
An IRA Trust can stretch out distributions over the lifetime of the beneficiary. Stretching out the IRA in this way gives the funds extra years and potentially decades of income-tax-deferred growth in a traditional IRA or tax-free growth in a Roth IRA. An IRA Trust also offers protection for your heirs. Through an IRA Trust you can address a host of beneficiary issues such as minor children or grandchildren, special needs beneficiaries, spendthrift beneficiaries, protection of assets from divorce or any other concerns you may have. IRA assets passing into an IRA Trust will be protected from creditors, predators, lawsuits and divorcing spouses as long as the funds remain inside of the trust and can only be distributed in the discretion of the Trustee. The IRA Trust allows you to “custom tailor” the inheritance of your IRA based upon the special circumstances of each beneficiary.
An IRA Trust allows you to control your IRA while you are alive, as well as providing a degree of control after you pass for the benefit of those you love. To find out more about the advantages of an IRA Trust, register to attend one of our free Workshops.
The Law Offices of Gail L. Abrams and Strategic Investment Advisors, LLC offers Free Seminars on Estate and Financial Planning including Living Trusts, Wills, Powers of Attorney, IRA strategies, Retirement Planning and more.
To learn more, call (908) 753-4156 or view website at www.estateattorneynj.com (Estate Planning Seminars) and www.siafinancial.com (Financial Planning Seminars) and make a reservation to attend one of these upcoming workshops:
Estate Planning: Lunch Workshops
No Walk-Ins permitted!
Tuesdays, March 26 or April 23, 2019, 11:00am – 1:00pm
2377 Rt. 22 West, Scotch Plains, NJ 07076
Thursday, March 28, 2019, 11:00 am – 12:00pm
600 Commons Way, Bridgewater, NJ 08807
Thursday, April 25, 2019 11:00am – 12:00pm
at Chimney Rock,
342 Valley Road, Gillette, NJ 07933
See www.Estateattorneynj.com for more information!
Financial Planning: Lunch Workshops
Thursdays, April 4 or May 2, 2019, 11:00am – 1:00pm
2377 Rt 22 West, Scotch Plains, NJ 07076
for more information!