Broker Check

How will you protect the IRA assets you leave your kids?

| May 18, 2016
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In June 2014 the Supreme Court ruled unanimously 9-0 to strip away the asset protection features of Beneficiary IRAs.  

What is a Beneficiary IRA?  It is the type of IRA that a non-spouse inherits from an owner.  Before this ruling, Beneficiary IRAs enjoyed the same asset protection features still enjoyed by Traditional IRAs such as protection from bankruptcy filings, judgements, liens, malpractice lawsuits and various other threats to loss of capital through legal proceedings.

So what should you do about it?  At Collier Wealth Management we have strategic alliances with estate planning attorneys who understand how to tackle this problem through the use of Beneficiary IRA Trusts.  The objective of these trusts is to re-establish the asset protection stripped away by the June 2014 Supreme Court ruling by naming the trust as the beneficiary rather than your kids.  Thus we can potentially resurrect the same asset protection and insulate inherited IRA assets from these threats.

If you have large IRA assets that you expect to leave to your children, call our team to start a conversation about this planning opportunity.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

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