In thisIRAlegacyplanningguide, we delve into the complexities ofIRAinheritance, tax implications, and the latest legislative changes.
TaxPlanningAdvantages of anIRATrustBecause assets accumulate within this "non-grantor"IRALegacyTrustwith its own tax ID number, there is more flexibility in using tax-advantaged financialstrategiesfor things like oil & gas investments, solar taxstrategies, opportunity zones, real estate, and low-income housing. Suchstrategiesmay not mean much to the average wage earner, but ...
Legacyplanningis about more than distributing assets; it is the careful design of a future that reflects a family's vision, values and long‑term priorities. For wealthy families navigating concentrated assets, tax exposure and increasingly complex estate landscapes,trustsremain among the most versatile tools available.
Withtrustplanningcombined with life insurance, you can create a multigenerationallegacyplan. As a reminder, your spouse has more options when receivingIRAassets, and life insurance can play an important role. For example, life insurance can provide liquidity to pay taxes on the inheritedIRA, allowing for a RothIRAconversion.
It's a two-IRAstrategy, in which oneIRAis used for RMDs, and the other is a deferred annuity with a guaranteed death benefit When the goal is to makelegacyplanningofIRAmoney as effective as possible, dividing those funds into twoIRAsmight be a smart solution.
LegacyPlanningforIRAsFrom Ed Slott'sIRAAdvisor (April 2024) Written with Joseph A. Clark, CFP® Financial Enhancement GroupTrustServices | Lafayette, INIRAsare designed as an accumulation tool to supplement the owner's retirement income, similar to employer-sponsored retirement plans such as 401(k)s.
