What is your unique estate plan? (besides evenly split among all kids) (grandparents, divorced)
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Is there a benefit to leaving either a Roth IRA or a Traditional IRA to my Dear Daughter ??
Are the Withdrawal Rules different on either of these as it relates to non-Spousal Inheritance ??
That's 2 general questions, but the same idea.....
There are many rules that apply so I'll just post one of many Fidelity links for you regarding inheriting an IRA. They have a lot of information available without requiring you to have an account so please read all you can there and then see a lawyer for the rest, or just have a great time and spend it...all.
DH has three children. I have none, but I do have one sibling, a much younger brother who is in the age bracket of DH’s kids. DH and I are the beneficiaries of each others’ estates. When the last of the two of us goes, what’s left will be split 2/3 to DH’s kids and 1/3 to my brother. My brother getting only 1/4 seemed too little to me, but him getting half seemed too much to DH. The 2/3-1/3 split seemed to be a happy medium.
Is there a benefit to leaving either a Roth IRA or a Traditional IRA to my Dear Daughter ??
Are the Withdrawal Rules different on either of these as it relates to non-Spousal Inheritance ??
For those of you in the planning phases (especially if you have a complicated situation, like being a second marriage with children from both your first and your second marriage), I highly recommend checking out this book: Beyond the Grave. It’s no substitute for a professional estate planner, but it will give you a good overview of what pitfalls you need to avoid.
Good Article in Forbes. As usual it's a little confusing, I need to study it further. But it seems like the Roth IRA might be better to leave to my Daughter, as it's already been taxed and would not add to her Income (I think that's what they're saying). Also, she could spread it out the distributions over a longer period, or take a Lump Sum (I think).
I have DW and DD named as Beneficiaries on the IRA's. Does it matter if they inherit as Beneficiaries or through a Will ??
We have no children, just siblings who don't need help and they have adult children with small children.
When I inherited 100k from grandmother so did my siblings. I gave each of their adult kids 10k (5 kids) and never asked what they did with it. What they did was a baby boom plus a marriage (baby on way), 4 more grandkids for their parents. Haha.
When I was their age, 30-something, it would have been a big help to get this kinda money, but no one had any to give.
Later on I may not have any money to leave anyone, comfortable now but who knows. I'd rather pay it forward.
Yes we have wills and the first to die knows there will be money set aside for their nieces and nephews (that requires a trust not just a will). We live middle class and I turn 65 in a couple years and will truly feel rich when I reach Medicare not Screwyou-care because our elected saps won't do the right thing and allow everyone to have decent insurance like senior citizens do.
Smaller sums left to favorite non-profits by using IRA beneficiary so no probate and can change them as I feel like it.
Answer to FiveLoaves: beneficiaries on brokerage and bank accounts do not go through probate (will). But there are some tax ramifications when younger people inherit IRA's. I'll bet they'll be happy anyway :-)
Good Article in Forbes. As usual it's a little confusing, I need to study it further. But it seems like the Roth IRA might be better to leave to my Daughter, as it's already been taxed and would not add to her Income (I think that's what they're saying). Also, she could spread it out the distributions over a longer period, or take a Lump Sum (I think).
I have DW and DD named as Beneficiaries on the IRA's. Does it matter if they inherit as Beneficiaries or through a Will ??
If they beneficiaries are named, it won't go through probate but will go directly to them, but I can't caution you enough to educate yourself, and them, as the laws can be tricky and costly if you don't follow the rules.
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