${site.data.firmName}${SEMFirmNameAlt}
Throughout Southern California
310-324-9403
Toll-Free
866-402-1805
View Our Practice Areas

If You Have an IRA Inheritance Trust®, Read This!

By Phil Kavesh, Attorney

 

Finally, on December 20, the Congress actually passed some important bipartisan legislation!

The good news is it will keep the government's "lights on" for a while without making all of us suffer through another "shutdown" first.  There is also very good news for workers wishing to increase their contributions to tax-advantaged retirement plans.

However, there is also some bad news - - for inheritors of IRAs (including IRAs to which the deceased owner may have rolled over his or her company retirement plans).

Under prior law, non-spouse beneficiaries of an IRA could "stretchout" the taxable required minimum distributions over their life expectancies, allowing money to compound tax-free inside the IRA for many years. This income tax stretchout enabled beneficiaries to save more for their later retirement needs. In many cases, our firm recommended that clients establish an IRA Inheritance Trust® as beneficiary, to not only qualify for the maximum income tax stretchout for the individual inheritors but to enhance the protection of an inherited IRA from inheritors' spouses, divorces, poor spending habits, creditors, lawsuits and possible loss of government benefits.

The new law, except in a few cases, eliminates the life expectancy stretchout and limits it now to only ten years.  This means many people who established an IRA Inheritance Trust® may want to revoke it and change their IRA beneficiaries, or merely amend the Trust, or do nothing at all.  We are conducting an extensive analysis of the new law, as well as our Trust, to determine the most informed courses of action from here. 

There is no rush to take immediate action before year end, since this new law applies to IRA's of people who pass away on or after January 1st.  We intend to make our best efforts to issue a summary memo to clients who have our IRA Inheritance Trust®, by February 1st.  If you have this Trust and don't hear from us by then, please go ahead and contact us.

P.S. We may also present a series of special seminars on IRA planning under the new tax law - - which may be applicable to you, whether you have an IRA Inheritance Trust ® or not! Stay tuned!

No Comments

Leave a comment
Comment Information
Email Us For A Response

Find Out The Difference That Experience And Expertise Makes

Get the peace of mind that you deserve. First, attend a seminar. This will entitle you to a free initial consultation and a discounted estate planning fee. To learn more about our services or sign up for a seminar, contact us online or call us at 866-402-1805. We have offices in Torrance, Orange, Newport Beach, Pasadena and Woodland Hills.

Questions? Contact Us.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Call Now For A Free Consultation: 866-402-1805
  • ${site.data.firmName}${SEMFirmNameAlt}
  • Main Office: Torrance

    Torrance Office
    990 West 190th Street
    Suite 500
    Torrance, CA 90502

    Toll Free: 866-402-1805
    Map & Directions

    Orange Office
    333 City Boulevard West
    17th Floor
    Orange, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Newport Beach Office
    5000 Birch Street
    Suite 8000
    Newport Beach, CA 92660

    Toll Free: 866-402-1805
    Map & Directions

    Pasadena Office
    790 East Colorado Boulevard
    9th Floor
    Pasadena, CA 91101

    Toll Free: 866-402-1805
    Map & Directions

    Woodland Hills Office
    5850 Canoga Avenue
    4th Floor
    Woodland Hills, CA 91367

    Toll Free: 866-402-1805
    Map & Directions

    Office map
Check out The Law Firm of Kavesh, Minor & Otis on Yelp
Check out Kavesh Minor & Otis on Yelp
Check out The Law Firm of Kavesh, Minor & Otis - Orange on Yelp
Check out The Law Firm of Kavesh Minor & Otis - Pasadena on Yelp