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