Many of us have retirement accounts, such as IRAs, 401ks and 403bs. The retirement accounts might very well be the largest assets we have, and they can grow income tax free. It is because of the tremendous potential for growth in these assets that we should spend particular time and attention to plan for what happens to them when we die.
Most of us desire to leave a legacy. The United States Supreme Court just took a bite out of our ability to protect the legacy we are all striving to leave behind. In a unanimous decision the Court ruled in Clark v Rameker that when an IRA owner dies and leaves the retirement account behind to a loved one it might no longer be protected. Anyone who has an IRA not only has to worry about the tax implications of their IRA when they pass, but also must take steps to ensure that the asset that could be a significant portion of the estate, will be protected from potential creditors of their beneficiaries.
With potentially very significant negative tax implications, combined with the loss of asset protection, and the ever looming threats from Washington, it is now more important than ever to update your estate plan to ensure that your retirement accounts are protected. At this stage, procrastination is a very dangerous option.
Contributed by MH Carefree, Phoenix and Flagstaff Estate Planning Attorney, B. West Hunsaker.
Why Choose Morris Hall:
You have a number of options when it comes to estate planning, so why pick Morris Hall? First off, estate planning and asset protection are a very complicated endeavor and you should only trust someone who focuses exclusively on those matters. Also, MH is a proud member of The American Academy of Estate Planning Attorneys (AAEPA) which provides us additional support, advanced training, tools and information that is not available to others – which means that we can better protect your assets and your loved ones. We are one of only two firms in Arizona that belong to the AAEPA and are the only firm in that has been granted membership. If you have assets and loved ones that you want to protect, you are in good hands with MH. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation
- What Happens If Someone Passed Away without a Will or Trust? - December 1, 2022
- What the Proposed Treasury Regulations Mean for Deductions Under Internal Revenue Code Section 2053 - September 16, 2022
- Does Your Estate Have Sufficient Liquidity? - September 14, 2022