You may be familiar with IRAs. You may also be familiar with Trusts, but have you heard of the ‘trusteed IRA’? The Trusteed IRA is an elegant financial planning tool that combines the best of the IRA world with that of the Estate document world. Learn more about the tool that many financial planners and estate planning attorneys are raving about.
No question that millions of Americans are using IRAs to save for their retirement. An estimated 48.9 million U.S. households, or 40.4%, owned IRAs as of 2012. However, current trends show that IRA withdrawals will increase significantly over the next decade, both in dollar amount and as a percentage of total retirement income, as the baby boomer generation enters retirement.
The problem, however, from an inheritance point of view that arises for the IRA creator is that when he or she dies, the beneficiary can withdraw part or all of the IRA funds at that time. That is probably not what the IRA creator intended long term.
What if there was a way, however, to control the ultimate beneficiaries, a way in which one could designate contingent beneficiaries that could not be altered by the primary beneficiary?
Enter the trusteed IRA or ‘individual retirement trust,’ an estate-planning device, which gives people considerable control and flexibility over their IRA funds.
Give us a call or email us to get to know more about this device.
Nalini Mahadevan, Esq
This blog post is not intended as legal advice.
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