The Death Of The Stretch IRA

[Speedy]

mattkime wrote:
Thanks for posting this. I've been thinking about doing some estate planning since I have two young children. If either me or my wife die its simple - we inherit each other's stuff. Its more complex when we both die at the same time.

I believe trusts could be used to skirt laws like this. Is that still true?

If you’re rich enough.

[mattkime]

Speedy wrote:
[quote=mattkime]
Thanks for posting this. I've been thinking about doing some estate planning since I have two young children. If either me or my wife die its simple - we inherit each other's stuff. Its more complex when we both die at the same time.

I believe trusts could be used to skirt laws like this. Is that still true?

If you’re rich enough.
fwiw I've seen numbers hovering around the $3k mark for estate planning and setting up trusts. Seems like that would be worthwhile for a large number of upper middle class people.

[NewtonMP2100]

.....remember.....trust is a two way street....

[Forrest]

According to Ed Slott there are five classes of “eligible designated beneficiaries” who are exempt from the 10-year post-death payout rule

[NewtonMP2100]

....what about stretch pants.....?

[Numo]

I think I read somewhere that trusts are affected by this Act, too. But I’m not sure how/why.

[rjmacs]

Sarcany wrote:
And I'm pissed off that this is just another way to screw the middle class to pay for the tax cuts for the ultra-wealthy.

:agree:


.

Sarcany wrote:
..My parents intended an inherited IRA to work like an allowance for my brother who cannot work and has trouble managing money. This will mess that up. Make him take the money over 10 years and the money will be gone in 10 years.

That stinks, but how were they going to stop him from excessively withdrawing funds from the IRA anyway? Would he be willing to accept a defined annual payout amount set by someone else? If so, could that person control the funds and disburse them on a transparent and legal schedule? There would be costs, of course, but still a lot cheaper than a traditional trust.