Pensions are quickly becoming a product of a by-gone era. The IRA is now one of the main assets for retirement. Why not pass that asset to your beneficiaries and give them a leg up, an advantage, on accumulating for their retirement or life goals by passing it with tax-deferred growth for years and generations? IRA trusts can accomplish this goal.
Billions of dollars are lost every year from people, passing away, family members cashing out an inherited IRA, paying income taxes then turning right around and investing the money. The problem with this is the money is not designated IRA money anymore. So a big chunk of money is lost when the IRA is cashed out to pay taxes. Now that smaller amount of money is re-invested but its not IRA money anymore. So incomes taxes must get paid on the growth.
With an appropriately drafted IRA Trust, the beneficiaries would avoid this large tax payment and would be able to keep the money growing and compounding, only paying taxes on the small amounts withdrawn each year. And it's the compounding, tax free that can cause incredible growth of this asset for your beneficiary.
If you are interested in learning more about the IRA Trust, feel free to contact Rowley Law today to schedule a consultation. In that consultation you can find out everything you need to know about the IRA Trust and other estate planning techniques.
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