Find the Secret to Protect your Ira Assets From Being Taxed Up to 70%

Many individuals see their family physician when there is some kind of persistent pain or discomfort. And at this time there are limited options and treatments available to treat the symptoms. With estate planning, there is very little one can do after the loved one has passed away or becomes incapacitated.
One such area of planning is referred to as IRA Planning. Typically, there is special attention required as a result of the immense complexities under the law. There are millions of baby boomer’s retiring over the next 10 to 20 years. If you don’t have the proper plan in place, all of your hard efforts to protect your assets for loved ones will be lost.
As stated in our title, up to 70% of one’s IRA can be wasted by Federal and State Estate Tax (approx. 50% depending on your State of domicile), and Income Tax (approx. 21 %) to the ultimate beneficiaries. Many individuals have attended seminars and read literature attempting to explain the concept of ‘Stretching-Out” one’s IRA. What you aren’t told is that there is a proper way of setting up your estate plan (including the beneficiary designation forms) to ensure this happens.
This is critical, and this is where your team of financial advisors, estate planning attorney and CPA’s/Accountants should be advising as to the need for IRA assets to be titled in a manner consistent with your intentions and goals. Many family’s and their financial advisors, believe that merely naming the children as IRA beneficiaries is sufficient to assure the stretch-out.

STOP READING AND FIND YOUR BENEFICIARY FORMS THAT YOU SIGNED WHEN YOU SET UP YOUR IRA’S. CALL OUR FIRM TO SET-UP AN APPOINTMENT BEFORE IT’S TOO LATE. . . CONTACT US AT WWW.DADICHLAW.COM IMMEDIATELY!!!!

If there was a way for you to ensure that your IRA’s, when properly inherited by your beneficiaries, were protected from a child’s divorce or mismanagement, wouldn’t you want to know about it? And what if there was a method to allow flexibility in your estate plan to allow your trustee to create additional protections, even after something unfortunate has happened, while allowing your children to have access for health, education, maintenance and/or support?
Assume the following facts: Mom is age 65 and has a $250k IRA, which includes money rolled over from her deceased spouse or from her own company retirement plan. We will assume that over time she enjoy an 8% annual growth of the account. At age 70 ½ the account would be worth $396,000. If she starts taking her RMD’s (Required Minimum Distributions) the IRA will continue to grow based on the tables as calculated by the IRS assumming that she only has to take out 4% (compared to the growth rate we’ve assumed at 8%).
If she passes away at 80, the inherited IRA is approximately $541,000. If the child continues taking his/her RMD’s (based on his/her life expectancy, by the time they are 80 they would have taken out a $2.9 million and will still have over $700,000 remaining to pass down to their children.
What if there was no planning done for our above example? (what if this was you or a loved one?) What if the 45 year old cashed-in his IRA and spent it on various needless costs? (new car, boat etc.) Or worse yet what if your child goes through a divorce? Do you want your child’s share to potentially go to an ex-in-law.
The IRS rules make it difficult to qualify a standard Revocable Living Trust (which is what most clients discusst when they meet with their estate and financial advisors) for the stretch-out provisions and added asset protection (as indicated earlier with the divorce of a child).
There are many advantages that a stand alone IRA trust has over the Revocable Living Trust. The provisions regarding the IRA distributions may be overlooked by the trustee when it is placed in the middle of a long document. More important, the terms of the IRA trust may be different and conflicting with that of the Revocable Trust as it may be more appropriate to have different instructions regarding distributions from the IRA then from the Trust.
It is critical that each document contain the provisions that are relevant to the distribution of the assets of the estate and the assets in the IRA. The Revocable Trust is not a mechanism for reducing the taxable estate, however, the IRA trust has significant tax advantages to both the parent, the child and the grandchildren.

Call our firm to find out what the 4 critical steps are to transfer your IRA assets to your loved ones. Don’t delay, you could be saving your family hundreds of thousands of dollars. CONTACT US AT WWW.DADICHLAW.COM OR CALL 248.358.6965.

Dadich & Associates, PLLC specializes in helping families transfer IRA’s to their loved ones. A family with concerns about their IRA should seek a qualified estate planning attorney to complement their other advisers. A professional who understands the tax ramifications along with estate and asset protection issues. Mr. Dadich has all of these qualifications, with his background as both an attorney, a CPA, and LLM in Tax..
His firm also specializes in Contested Probate litigation. Don’t let your estate end up in probate court as you have witnesses in many celebrity cases. Anna Nicole Smith did not have proper tax or estate planning and her estate will be substantially reduced in value over time as a result of unnecessary tax liabilities and immense legal fees. All of which could have been avoided with proper estate and tax planning. Do not let this happen to you. See us first.