IRA Inheritance Trust: For many of our clients, their IRA is one of their biggest assets. Given the size of the IRA and the ages of the beneficiaries, a separate Trust for the IRA should be given serious consideration. An IRA Inheritance Trust is a revocable trust designed specifically for an IRA. The IRA Inheritance Trust makes sure that the beneficiary takes advantage of the maximum “stretch out” of IRA distributions and can protect the IRA from the possibility of the beneficiary losing the benefit of the IRA assets due to divorce, creditors, lawsuits, and estate taxes. Our clients often find that aside from income and estate tax savings, one of the most valuable attributes of establishing an IRA Inheritance Trust is that it helps provide a legacy, in your name, for future generations of loved ones, who will always know where those funds are coming from.
The Kiselstein Franckowiak Law Group is one of the very few law firms who have implemented this technique and many financial advisors don’t know about it yet or if they do, they are not familiar with its operation and technical requirements. This is a very narrow area of the law. The actual Trust document that we use, was submitted to the IRS for approval and the IRS has issued a written published ruling (Private Letter Ruling), which has approved its use. We know that it will work when set up properly, because the IRS has approved it.
The attorneys at the Kiselstein Franckowiak Law Group have extensive knowledge and experience regarding the federal tax law applicable to retirement benefits. When counseling clients regarding their retirement assets and establishing estate plans for the most tax effective way to distribute all assets, including an IRA, we give close consideration to the overall estate planning objectives of the client. Before we recommend establishing an IRA Inheritance Trust, we consider the size of your IRA, the ages of your beneficiaries, and relevant facts relating to the beneficiary’s circumstances.