From the Desk of Estate Lawyer, Kristina R. Hess,
Did you know that your retirement accounts can be a wealth building tool for the generations?
Retirement accounts are also a really good tool for your charitable giving?
If you do not spend all your retirement assets before you pass on to a better place, where do you want these assets to go?
Did you know that the creditor protection is lost once they become inherited IRAs? Yes, see my prior post on the Clark v. Rameker 2014 Supreme Court decision.
The other problem with retirement assets is they are subject to a potential triple tax! (Federal and state income tax on distributions and estate taxes if you have a taxable estate!).
Depending on your state, this could be a big number. High income taxes in California could mean up to 12 or 13% and federal rates could be between 15 and 39.6%….
But if you leave your retirement accounts to charity, then they pass tax free!
Or, if you want to leave your retirement accounts for children or grandchildren — then, consider a Retirement Legacy Trust. You can mandate the “stretch” of the account — bringing in the 8th wonder of the world… and you can protect the retirement accounts from your beneficiaries’ creditors! Two worth goals and objectives.
Check out the video newsletter and let me know if you have questions!
Here to serve you and help you build lasting legacies,
Trust Attorney in San Diego, California
Kristina of KR HESS LAW