IRA trust - five people smiling

Benefits of an IRA Trust

Preparing for the future is an important part of life. An Individual Retirement Account (IRA) is one very common financial investment that includes tax benefits to help people save for their golden years and pass on an inheritance to successive generations. But if plans haven’t been set in place by the IRA’s owner prior to death, guarding this important asset for the next generations can become complicated. Phelps LaClair, located in Scottsdale and Gilbert Arizona, can help you safeguard your entire estate, and that includes your IRA account.

Protection of IRAs

An IRA is protected from creditor claims while the account owner is alive. Unfortunately, upon the account owner’s death, once it is transferred to the individual beneficiary, the IRA loses its protected status.

 Protect your IRA even after your death, with a specific form of trust set in place by you. With an IRA trust, your assets will be protected for the beneficiary from divorce, creditors, lawsuits and other predators. This means assets can remain in use for the beneficiary, regardless of the circumstances surrounding their lives.

An IRA trust not only shields from the claims of unwanted third parties and lawsuits, it also protects a beneficiary from their own unwise choices. Bad decisions, excessive spending, unwise investments, or overreaching spouses are all protected in the IRA Trust.  

Be Proud Of The Legacy You’ve Built

You want to leave a legacy for your loved ones. When thinking of the next generations, you want the hard-earned savings you’ve put into your IRA to be preserved and to continue to provide for your children and grandchildren. That’s where an IRA trust enters the picture and takes care of your IRA assets, even after your death. An IRA trust won’t allow your beneficiary to cash it out and spend it as they see fit, because you create the stipulations of when and how much the beneficiary will be able to withdraw from the trust. The guidelines you establish in your IRA trust will guard your beneficiary with financial responsibility and discipline, and through the protection of your IRA, provide for them for years to come. And, with guidelines set in place to ensure the IRA is used in a responsible manner, the IRA can continue to accrue and grow in income, increasing your investment for those who follow in your footsteps.

Creating a strategic estate plan requires careful planning and follow through. Protecting your IRA as part of your assets is important for the sake of your loved ones. For more on safeguarding your IRA, click on this link to learn about the value of an IRA trust.

Contact Phelps LaClair today to create an estate plan that helps you leave a great legacy for your loved ones.


Images used under creative commons license – commercial use (12/26/2017) Randy Griffin (Flickr)

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