An IRA is one type of retirement account that is available in Torrance, California. It is essential to consider the beneficiaries that you want to add to your IRA. One option for your beneficiary, however, is a living trust. In doing this, the money will be available at any time through a distribution from the trust that you choose as the beneficiary.
Benefits of this method
There are many benefits of a living trust being your beneficiary. When considering your wills and trusts, you need to think about the status of your heirs. A trust beneficiary is especially important if your heirs have special needs, are minors or are untrustworthy with your money. You do not want the assets to just go to your spouse or left for others to decide.
Disadvantages of this method
When someone requests a payout from a trust, there is a limit to the number of funds to withdraw at one time. This is dependent on how old the oldest person is, which is problematic if there are multiple individuals.
Considerations
If you decide to make a living trust your IRA beneficiary when considering your wills and trusts, there are important considerations. These will help the process to go smoother and considerations are:
*You are the only person who can change beneficiaries to your IRA.
*A power of attorney can make changes if you appoint them.
*A disclaimer may come to pass the assets to the beneficiary who is contingent or the default.
Final Thoughts
There are many options available to you when creating beneficiaries for your IRA account. One of the most controversial is to make a living trust your beneficiary. If you want to discuss this option in more detail, contact a lawyer who specializes in wills and trusts today.
