| Many individuals see their family physician | | | | her life expectancy, by the time they are 80 |
| when there is some kind of persistent pain or | | | | they would have taken out a $2.9 million and |
| discomfort. And at this time there are | | | | will still have over $700,000 remaining to |
| limited options and treatments available to | | | | pass down to their children. |
| treat the symptoms. With estate planning, | | | | |
| there is very little one can do after the | | | | What if there was no planning done for our |
| loved one has passed away or becomes | | | | above example? (what if this was you or a |
| incapacitated. | | | | loved one?) What if the 45 year old cashed-in |
| | | | his IRA and spent it on various needless |
| One such area of planning is referred to as | | | | costs? (new car, boat etc.) Or worse yet what |
| IRA Planning. Typically, there is special | | | | if your child goes through a divorce? Do you |
| attention required as a result of the immense | | | | want your child's share to potentially go to |
| complexities under the law. There are | | | | an ex-in-law. |
| millions of baby boomer's retiring over the | | | | |
| next 10 to 20 years. If you don't have the | | | | The IRS rules make it difficult to qualify a |
| proper plan in place, all of your hard | | | | standard Revocable Living Trust (which is |
| efforts to protect your assets for loved ones | | | | what most clients discusst when they meet |
| will be lost. | | | | with their estate and financial advisors) for |
| | | | the stretch-out provisions and added asset |
| As stated in our title, up to 70% of one's | | | | protection (as indicated earlier with the |
| IRA can be wasted by Federal and State Estate | | | | divorce of a child). |
| Tax (approx. 50% depending on your State of | | | | |
| domicile), and Income Tax (approx. 21 %) to | | | | There are many advantages that a stand alone |
| the ultimate beneficiaries. Many individuals | | | | IRA trust has over the Revocable Living |
| have attended seminars and read literature | | | | Trust. The provisions regarding the IRA |
| attempting to explain the concept of | | | | distributions may be overlooked by the |
| 'Stretching-Out" one's IRA. What you aren't | | | | trustee when it is placed in the middle of a |
| told is that there is a proper way of setting | | | | long document. More important, the terms of |
| up your estate plan (including the | | | | the IRA trust may be different and |
| beneficiary designation forms) to ensure this | | | | conflicting with that of the Revocable Trust |
| happens. | | | | as it may be more appropriate to have |
| | | | different instructions regarding |
| This is critical, and this is where your team | | | | distributions from the IRA then from the |
| of financial advisors, estate planning | | | | Trust. |
| attorney and CPA's/Accountants should be | | | | |
| advising as to the need for IRA assets to be | | | | It is critical that each document contain the |
| titled in a manner consistent with your | | | | provisions that are relevant to the |
| intentions and goals. Many family's and their | | | | distribution of the assets of the estate and |
| financial advisors, believe that merely | | | | the assets in the IRA. The Revocable Trust is |
| naming the children as IRA beneficiaries is | | | | not a mechanism for reducing the taxable |
| sufficient to assure the stretch-out. | | | | estate, however, the IRA trust has |
| | | | significant tax advantages to both the |
| STOP READING AND FIND YOUR BENEFICIARY FORMS | | | | parent, the child and the grandchildren. |
| THAT YOU SIGNED WHEN YOU SET UP YOUR IRA'S. | | | | |
| CALL OUR FIRM TO SET-UP AN APPOINTMENT BEFORE | | | | Call our firm to find out what the 4 critical |
| IT'S TOO LATE.... Contact us now at | | | | steps are to transfer your IRA assets to your |
| | | | loved ones. Don't delay, you could be saving |
| If there was a way for you to ensure that | | | | your family hundreds of thousands of dollars. |
| your IRA's, when properly inherited by your | | | | IT DOESN'T MATTER WHAT STATE YOU'RE IN WE |
| beneficiaries, were protected from a child's | | | | HAVE A NETWORK OF ATTORNEY'S ACROSS THE |
| divorce or mismanagement, wouldn't you want | | | | COUNTRY TO ASSIT YOU |
| to know about it? And what if there was a | | | | |
| method to allow flexibility in your estate | | | | Dadich & Associates, PLLC specializes in |
| plan to allow your trustee to create | | | | helping families transfer IRA's to their |
| additional protections, even after something | | | | loved ones. We have 5 offices in the State of |
| unfortunate has happened, while allowing your | | | | Michigan. A family with concerns about their |
| children to have access for health, | | | | IRA should seek a qualified estate planning |
| education, maintenance and/or support? | | | | attorney to complement their other advisers. |
| | | | A professional who understands the tax |
| Assume the following facts: Mom is age 65 and | | | | ramifications along with estate and asset |
| has a $250k IRA, which includes money rolled | | | | protection issues. Mr. Dadich has all of |
| over from her deceased spouse or from her own | | | | these qualifications, with his background as |
| company retirement plan. We will assume that | | | | both an attorney, a CPA, and LLM in Tax. |
| over time she enjoy an 8% annual growth of | | | | |
| the account. At age 70 ½ the account would | | | | His firm also specializes in Contested |
| be worth $396,000. If she starts taking her | | | | Probate litigation. Don't let your estate end |
| RMD's (Required Minimum Distributions) the | | | | up in probate court as you have witnesses in |
| IRA will continue to grow based on the tables | | | | many celebrity cases. Anna Nicole Smith did |
| as calculated by the IRS assumming that she | | | | not have proper tax or estate planning and |
| only has to take out 4% (compared to the | | | | her estate will be substantially reduced in |
| growth rate we've assumed at 8%). | | | | value over time as a result of unnecessary |
| | | | tax liabilities and immense legal fees. All |
| If she passes away at 80, the inherited IRA | | | | of which could have been avoided with proper |
| is approximately $541,000. If the child | | | | estate and tax planning. Do not let this |
| continues taking his/her RMD's (based on his | | | | happen to you. See us first. |