There are many different types of effective trusts to accomplish specific things in retirement and estate planning. Unfortunately though, many people don’t ever consider the use of trusts because of the perception that they are only for the ultra-wealthy. Actually, trusts are used by millions of people who just simply care about what happens to their wealth once they pass away. So, are you trustworthy?
The Kokomo Perspective recently posted an article titled “Are You Trustworthy?” The article explains that due to all the recent rule and distribution changes to IRAs and other retirement accounts, the IRA Trust has become much more popular and effective. An IRA Trust is a special type of revocable living trust that’s designed to receive your IRA accounts for the benefit of your loved ones after you pass away. The IRA Trust offers both protection and control.
The original article explains that an IRA is frequently one of the largest assets passed on to beneficiaries. However, as we hear about in the news, the inheritance of large sums of money by children or other heirs unable to handle wealth can cause many problems. The U.S. Supreme Court held last year that inherited IRAs are not protected from bankruptcy, so many individuals worry about losing an inherited IRA to creditors, divorce, taxes, or reckless spending. These concerns have sent many IRA owners searching for a better way to protect this money for their heirs.
Talk with an experienced estate planning attorney about the IRA trust and its benefits. See if this tool will work for your situation.
Reference: Kokomo Perspective (March 29, 2015) “Are You Trustworthy?”