Planning for retirement is one of the most common and daunting personal finance concerns for families. Parents want to ensure that their children are taken care of, but inherited IRAs can represent a significant tax burden. IRA minimum distributions can be "stretched out" over the lifetime of the beneficiary, creating a huge potential increase in wealth; however, the amount of each distribution is taxable and there is no grace period.
In an article published by On Wall Street, John explains how retirement inheritance trusts can be a more tax-efficient way to pass on retirement funds. Trusts can be particularly beneficial for parents concerned about leaving a large amount of money to minors or children whose money management skills are lacking. Compared to an IRA, trusts can provide better protection against losing money through a divorce, lawsuit, estate tax or family dispute. "Protecting your clients' assets with a retirement inheritance trust may be the most secure option for them and their family," says Mr. Goralka.