By estate planning and elder law attorney Rick Law. Managing partner at the Estate Planning Center at Law Elder Law. Senior advocates in Western Chicagoland in Illinois.
What is an IRA?
It seems like a relatively simple question.
You may have one, and you think you know what it is, what it’s for, and how it works… but I sit with people daily who feel that they were “lied to” about their IRAs.
It’s important to remember that the money in your IRA has not been taxed, so the IRS may require that taxes be paid.
Depending on how the money is pulled out and used, that amount could be close to a whopping 40%… or something like 0%!
The secret is that it’s all in how your IRA is used… and if you should use it.
This is one of the many reasons I urge you to see a qualified Senior Estate Planning attorney before you make any changes to your assets. As you will read in a future blog post, using your IRA incorrectly could result in your family being needlessly out of money and out of options.
When someone with an IRA turns 70½, the IRS requires you to take a certain amount out of your IRA each year… a fact that makes many seniors’ blood boil. But using it for the right things can actually turn that annoyance into a benefit.
An estate planning elder law attorney can help explore your options for choosing a potential beneficiary. The most typical five are your spouse, children, grandchildren, placing the IRA into a trust, or giving it to a charity. We’ll explore some of the benefits and drawbacks of each of these options as we continue in future posts.
If you’re ready to start getting your estate in order and secure your assets for the “worst-case” scenario, please give our office a call at 800-310-3100. Your first consultation is absolutely free. We’ll let you know what steps you need to take, right now, to protect yourself and your family. Call now.
Rick L. Law, Attorney, Estate Planner for Retirees.
Rick was named the #1 Illinois elder law estate planning attorney by Leading Lawyer Magazine. He has been quoted in the Wall Street Journal, AARP Magazine, TheStreet.com, and numerous newspapers and articles. Rick is the lead attorney for Law Elder Law, LLP, focusing in Estate Planning, Guardianship, and Nursing Home Solutions. His goal is to give retirees an informed edge when it comes to dealing with an uncertain future. Get flexible retirement strategies that work during good times and bad, plus information on how you can save your home and assets from being used to pay for long term care. Call 800-310-3100 for your free consultation now!