Retirement Account Protection

Leave Your Family a Financial Legacy

Even with the recent stock market losses, retirement accounts remain most people’s most valuable asset.

As such, they remain a target for creditors and predators, which can include those who win a lawsuit against you and even your family members. Protection strategies depend on a number of factors, including your retirement account and whether you inherited the assets or earned the funds yourself.

First, understand retirement accounts are not designed as wealth transfer tools. Their intended purpose is to encourage savings and lessen your need for social security. From a government perspective, the ideal situation is you use all of your retirement and then pass away when your account reaches $0.

However, with today’s tax-deferred plans, a popular choice for retirement savings, a scenario where you have leftover money is likely. So having a plan to distribute your retirement assets when you die is an important facet of proper estate planning.

What Happens to Your Retirement When You Pass Away?

When you die and have an individual designated as the beneficiary for your IRA, that person can take a lump sum payment and get access to all your money at once. For some individuals, this scenario is no big deal.

But for anyone wanting to leave a financial legacy, the situation presents problems. Fortunately, recent changes in the way the IRS governs minimum required distributions makes it easier to spread your wealth to many generations after you.

Through an IRA Protection Trust, your beneficiaries receive larger inheritances by leveraging the income tax deferral over a long period.

It can also:

  • Protect your loved ones from losing your IRA to a divorce, lawsuit, creditors or government claims.
  • Allow your IRA to grow income tax-free so future generations can benefit from your financial legacy.
  • Prevent your beneficiaries with poor money management skills from blowing your wealth that you took a lifetime to create.

To make the retirement protection process easier for you, we offer a free awareness guide, How to Ensure a Legacy of Lifetime Income for Your Loved Ones, you can access right now. The information can help you reduce the hours you spend with an attorney and avoid falling victim to shady advice or shams. You’ll get the steps you can take today to ensure your assets get passed on with minimal delay, hassles or costs.