SECURE Act
A recent widow (age 63 ) has a 3 million dollar IRA.
She is considering naming her RLT is the primary benefactor for the benefit of her two daughters.
Advantages, disadvantages under the new SECURE Act?
Thanks…as always.
A recent widow (age 63 ) has a 3 million dollar IRA.
She is considering naming her RLT is the primary benefactor for the benefit of her two daughters.
Advantages, disadvantages under the new SECURE Act?
Thanks…as always.
Permalink Submitted by Alan - IRA critic on Fri, 2020-01-31 23:39
The IRA will have to be distributed within 10 years under the Secure Act, whether left outright to the daughters or the trust. I expect that estate attorneys will be swamped for awhile reviewing estate plans impaired by the Secure Act. There are also a few issues about the Act that will need to be clarified by the IRS. If she already has a RLT, it may need to be amended. The main benefit of leaving it to a trust is probably creditor protection unless the beneficiaries have specific issues to be addressed. The only way a beneficiary would still get the life expectancy stretch would be if they are disabled or chronically ill.
Permalink Submitted by Adman Gilly on Wed, 2020-02-05 13:05
Can grandchild be EDB Minor to get majority attainment age plus 10 years or EDB must be owner’s child only?
Permalink Submitted by Alan - IRA critic on Wed, 2020-02-05 14:52
EDB minors are limited to the child of the plan owner.