IRA Trusts in Vancouver, WA
Protect your children with little ongoing costs
What is an IRA Trust?
In 2006 Congress required that all qualified retirement plans—including IRAs, SEP-IRAs, 401(k) plans, and 403(b) plans—must allow naming an IRA Trust as a beneficiary. By doing so, Congress allows you to form an IRA trust in Vancouver, WA, for your child that allows the Inherited plan to remain tax-deferred.
Because your child does not own the Inherited IRA, the trust provides shelter from your child’s creditors as well and divorce complications. Further, the IRA financial trust excludes the IRA from your child’s estate for death tax purposes. As a bonus, you may dictate that any amount remaining at your child’s death passes to your grandchildren, thereby avoiding your daughter-in-law or son-in-law.
IRA trusts in Vancouver provide huge benefits at low cost. The reason you have not heard about them is likely because the rules surrounding IRAs are very involved, which cause many professionals to avoid the issue. This avoidance could cost your family dearly. Let us make it simple for you. Schedule a consultation for IRA trust services in Vancouver, WA, today to begin planning for your children’s future!
IRA Trusts in Vancouver provide huge benefits at low cost. The reason you have not heard about them is likely because the rules surrounding IRAs are very involved, which cause many professionals to avoid the issue. This avoidance could cost your family dearly. Let us make it simple for you. Schedule a consultation with us today to begin planning for your children’s future!
Huge benefits at a low cost
How does this benefit you?
If your IRA passes into a properly drafted IRA Trust for your child at your death, here are some of the many advantages:
Divorce Protection
The trust owns the IRA, not your child. The IRA is not included as marital property in your child’s divorce to be divided as part of the divorce proceedings.
Creditor Protection
According to the Supreme Court, if your child owns the Inherited IRA, it is not protected from the creditors. If you use an IRA Trust, the trust is the owner, not your child. The IRA Trust shelters the IRA from your child’s creditors.
Estate and Inheritance Tax Protection
If you leave your IRA to your child, then it is included as part of your child’s assets for inheritance and estate tax purposes. By using the IRA Trust, the trust is the owner, not your child. At your child’s death, the child’s taxable estate doesn’t include the IRA.
Low Cost
If you name your child as the trustee, your child will not charge a fee, so there is no trustee cost.
“Stretching” the IRA
If drafted correctly, the trustee can stretch the IRA over the beneficiary’s lifetime, securing all the same tax deferral benefits that the beneficiary would have had if the beneficiary held the Inherited IRA in his or her name.
Keeping the Money in the Family
If you give your IRA to your child, then your child selects who receives the remainder at your child’s death. This will likely be your child’s spouse. By using an IRA Trust, you choose the successor beneficiaries. You can keep the money in your family by naming your grandchildren as the successor beneficiaries.
Special Needs Planning
An IRA Trust allows you to preserve an IRA’s tax deferral, but still provide assistance to a Special Needs person without disqualifying them from needs-based government benefits.
Contact our IRA financial trust attorneys today to learn more!
“Everyone at Wills & Trusts is extremely professional from the time you walk in the front door. Our Trusts documents were completed on time without any issues. Our attorney was polite, professional, and courteous. I would recommend him to anyone needing their trusts or wills drawn up.”
— Kevin Irvin