Offered by: Michael A. Dolan – Dolan & Associates, P.C.
In December Congress passed the SECURE Act. The Act significantly changed how retirement assets are treated after your death. A lot of articles and information have been circulated about the impact of this new legislation. Unfortunately, much of this information, and the recommended changes, is inaccurate and does not consider all of the available options.
One of the responses to this new law was to dismiss using a protective trust as a beneficiary for your retirement plan. Protective trusts provide advantages for your family, including protection from creditors, a future divorce, and financial damage from a catastrophic illness. Directing your retirement plan to a protective trust is an effective planning tool. If designed correctly, there will be no difference in the income tax outcome. When adjusting for a change in the law, don’t forget what you hoped to accomplish through your estate, and make adjustments to address the tax change with that in mind. While the new law did increase taxes, the changes to the law did not create a situation that requires you to abandon your goals and objectives.
Anyone who has retirement plan assets should meet with their knowledgeable estate planning attorney to update their estate plan and how they are addressing their retirement plans. If someone is telling you that you shouldn’t leave a retirement plan to a trust because of taxation issues, they are simply misinformed. There are simple techniques available, and some may actually increase the amount your family receives after taxes are paid.
If you are not sure how to get started with the process, I encourage you to get some education around the subject. If you would like to learn more about available estate planning options, visit: www.EstatePlansThatWork.com to sign up for a complimentary small group educational workshop.
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