Shocking to most people, the retirement account you leave for your spouse can be seized in a divorce, lawsuit, or bankruptcy.
3 Options Available To Surviving Spouses
When your surviving spouse inherits your IRA, he or she generally has three options:
- Cash out the inherited IRA and pay the income tax.
WARNING! The cashed-out IRA will not have creditor protection and accelerates taxation.
- Maintain the IRA as an inherited IRA.
WARNING! The inherited IRA will not have creditor protection.
- Roll over the inherited IRA and treat it as his or her own.
WARNING! This may offer some creditor protection; however, not in all cases.
It’s frustrating to many that a stranger can swoop in and take their hard earned money; fortunately, there’s a solution and that solution is a retirement trust.
Standalone Retirement Trusts Provide Protection
A Standalone Retirement Trust (SRT) is a special type of trust designed to be the beneficiary of your retirement accounts after you die. It can protect your assets from your beneficiary’s creditors. In fact, we can include trust provisions which specifically benefit your spouse in situations such as:
- Second marriages
- Lawsuits from car accidents, malpractice, or tenants
- Business failure
- Medicaid qualification
Want To Know More?
The bottom line is that a properly drafted SRT is often your best option for protecting your retirement assets (and providing the bonus of tax-deferred growth). Want to know more? Contact us today to schedule a conversation. We look forward to working with you.
There are many different benefits of incorporating, which is why so many companies in Florida and throughout the United States operate as corporations. If you are thinking about forming a corporation or are trying to decide which business structure makes sense for...
If you are starting or investing in a business, you must understand buy-sell agreements and you should strongly consider creating such an agreement for your organization. A buy-sell agreement can protect your investment and can help to ensure your company is able to...
If you have been thinking about your estate plans and find yourself concerned that your entire estate could be stuck in the probate process for an unacceptable length of time after your death, your concerns have merit. While necessary in many instances after someone...
When someone passes away in Fort Myers, it is likely that the probate process will occur. The probate process is the formal process for winding up a deceased person's estate and transferring the assets of the deceased person to new owners. While probate is necessary...
If you’ve been named as the trustee for a loved one’s estate, the task ahead of you may seem to be a simple one. You might even think that there is nothing more to the role than just distributing assets in accordance with the deceased’s detailed wishes. In reality,...
A power of attorney (POA) is a legal device that can be used to give authority to an agent. Many people in Fort Myers create a power of attorney to allow someone else to act on their behalf, either in a specific business transaction or in case they become...
Fort Myers (Main Office):
12751 New Brittany Blvd.
Fort Myers, FL 33907
F: (239) 221-0279
By Appointment only
New York Office:
Suite 240, One Suffolk Square
1601 Veterans Memorial Hwy
Islandia, NY 11749
F: (239) 221-0279
Proudly Serving Communities across Lee County, Collier County, Charlotte County & Southwest Florida
The information on this Law Firm website is for general information purposes only. Nothing on this or associated pages, documents, comments, answers, emails, or other communications should be taken as legal advice for any individual case or situation. This information on this website is not intended to create, and receipt or viewing of this information does not constitute, an attorney-client relationship.