My Pink Lawyer Sep 2017


Did you know that 90 percent of IRAs are cashed out by their beneficiaries during the contributor’s lifetime? That means before you die, your children could already be using up their trust money. So much for providing for your child’s retirement when you die!

• Create ongoing trusts for minors or disabled children

• Provide divorce or creditor protection

Besides, IRAs are funded with tax-deferred dollars, which makes the money they cash out heavy with income taxes that

• Provide for a “new”

surviving spouse for his lifetime, while ensuring his retirement balance continues to your children. If your beneficiary has special needs or is receiving public assistance benefits, the IRA can account for that too. Just make sure the ends justify the means. IRA inheritance trusts will be an additional expense to your estate planning, and they require ongoing maintenance expenses once you die.

go along with it. So what can you do to protect these assets? Wise women plan for their retirement assets in a special way.

You can create specially designed retirement inheritance trusts to receive and manage the retirement funds, rather than create the usual liquid assets. For instance, you can make sure an IRA trust prevents the beneficiary from cashing out the IRA early and forces them to take distributions over a longer period of time.

That’s one of the many ways you can design a special IRA trust. You can also use them to ...

• Guarantee the maximum stretch for the payment of income taxes

A wise woman will talk to her estate planning lawyer to decide if the value of her retirement assets and particular goals justify the use of an IRA inheritance trust.


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