Careful and meticulous estate planning with an IRA trust can forestall unwanted consequences and capitalize financially on its long term value
For many people, most of their wealth is contained in their IRA’s. An IRA represents a lifetime of savings, with the added benefit of income tax deferment. If you have an IRA, you should know that failure to name a beneficiary can have significant financial consequences for your estate following your death. The specifics are complicated and vary according to your particular circumstances, ranging from accelerated income taxation to equal distribution between your preferred beneficiaries and your heirs whom, in some cases, you may prefer to receive little or nothing from your estate. Even when a beneficiary is named, statistically speaking, the designated beneficiary is likely to withdraw most IRA assets from inherited IRA’s within the first two years of the beneficiary receiving the inherited IRA. Creating an IRA trust can allow for a more steady, long term distribution of the IRA assets to your chosen beneficiary, thereby allowing the IRA assets to accumulate over time tax-free and remain available for your designated beneficiary’s long term needs. Whether you choose to create an IRA trust or name individual beneficiaries, this is a vital component in your estate plan that must be carefully reviewed. The Fort Lauderdale estate planning attorney at The Law Offices of Gregory W. Kabel, P.A. understands the importance of this vital estate planning tool. Our concentrated focus on estate planning allows us to offer the very specialized legal counsel you need to make an informed decision.