IRA Trust Planning

Estate & Business Planning Law Firm Serving the Providence & Cranston, RI Areas

Clients have worked hard to build their IRA accounts. For many, IRA accounts may represent the largest asset of an estate. However, often times, beneficiaries may not be aware of the rules regarding inherited IRA distributions and may not take advantage of IRA laws which allow beneficiaries to "stretch out" the inherited IRA for a longer period of time. By stretching out IRA distributions, this could result in substantial investment growth. In other scenarios, a beneficiary may be a spendthrift or have special needs, and simply leaving an IRA to such a beneficiary would not be prudent. Other beneficiaries may have creditor issues, and as a result of the recent United States Supreme Court case, Clark v. Rameker, the inherited IRA may be subject to the claims of the beneficiary’s creditors.

By establishing an IRA Trust, these issues can be addressed to (i) allow the beneficiaries to stretch out benefits over an extended period of time; (ii) make sure that the right people inherit the IRA, at the right time; and (ii) protect the inherited IRA from creditors, divorce, and extra taxes.

Please contact us to discuss the benefits of an IRA trust in greater detail.

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