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:
WARNING! The cashed-out IRA will not have creditor protection and accelerates taxation.
WARNING! The inherited IRA will not have creditor protection.
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:
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.