An Introduction to Retirement Asset Protection Trusts
For many of our clients, their IRA’s are often the most significant asset in their estate. With real estate prices being what they are today, that isn’t surprising that the IRA is worth more than the home. The SECURE Act, which passed in the beginning of 2020, has significantly changed how we can plan for retirement assets. Although options are more limited, there are still ways to plan!
Many clients are surprised to find out that their IRA is not distributed through the Last Will & Testament or Living Trust. The Will has nothing to do with the iRA! Instead, your IRA is distributed according to the beneficiary designation form (BDF) that you filled out when you established the account. The IRA will be distributed right to that person (or people) listed on the form, even if the Will says something different.
MANY CLIENTS DO NOT ADEQUATELY PROTECT THEIR IRA’S. CONTACT US TODAY AND WE WILL SHOW YOU HOW YOU CAN PROTECT AND PRESERVE YOUR IRA FOR YOUR HEIRS!
Once the IRA is passed onto your beneficiary, he or she can do anything with it, including cashing the entire account in. Also, the entire account instantly becomes part of your beneficiary’s estate. If your beneficiary has spending problems, addiction issues, special needs, going through a tough divorce (or potential for one), is in a high risk profession, going through bankruptcy, or generally has creditor problems, this asset is suddenly exposed to all of those issues. If you aren’t worried about your beneficiary today, what about tomorrow? The future is uncertain.
Our firm can protect your IRA from all of these challenges. We can protect your beneficiary from him or herself and others, and tailor an IRA Inheritance Trust that can be as accessible or restrictive to the beneficiary as you wish.
By establishing an Retirement Asset Protection Trust, we also ensure that the IRA is allowed to grow tax-deferred for potentially several years (depending on the age of the beneficiary).
Contact us today at (215) 706-0200 and ask for our special report on the Retirement Asset Protection Trust.
If you are interested in discussing options for your IRA in your estate plan, contact our firm today at (215) 706-0200.