Are You Trustworthy?

By Admin Prepare

April 3, 2019

There are many different types of effective trusts available for accomplishing specific things for retirement and estate planning.  Unfortunately, many people don’t ever consider using a trust because of the perception that they are only for the ultra wealthy.  Actually, trusts are used by millions of people who just simply care about what happens to their wealth both during and after their lifetime. So, are you trustworthy?

Because of all the rule and distribution changes made to IRAs and other types of retirement accounts over the last several years, one specific trust has become a lot more popular and effective.  This is the Inherited IRA Trust.  It is a special trust that is designed to hold your IRA accounts for the benefit of your loved ones following your death.  The two major benefits of the IRA Trust are protection and control.

Many times, an IRA is one of the largest assets passed on to beneficiaries.  Unfortunately, the inheritance of such large sums of money by children, or other heirs, can cause many problems. Recently, the Supreme Court ruled that Inherited IRAs are not protected from bankruptcy.  There is also concern by many people about losing an Inherited IRA to creditors, divorce, taxes, or reckless spending.  So, many IRA owners look for ways to safeguard this money for their heirs. 

An IRA Trust offers protection against these issues as well as the ability for the owner to maintain some control of the account and the payout, even after they pass away.  Thus, the IRA Trust can be a very valuable tool in certain circumstances. To learn more about the functionality and benefits of the Inherited IRA Trust, visit The Prepare Institute website and find an upcoming retirement education course in your area.    

Content is for educational and informational purposes only.  It is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should contact your retirement and tax professional before utilizing any of the information in this article.