Orange County California

Trust Attorneys


Taking your IRA Benefits in a Lump Sum Versus Remainder of Life Expectancy -Explained by Orange County Estate Planning Attorney James F. Roberts

Lump Sum Versus Remainder of Life Expectancy

I really want you to sit back and think about it. Let’s say you have significant money in your IRA account. We will say $300K that you plan to leave to a son or daughter.

Would you rather have your child pay the taxes right up front and end up with maybe $175K after taxes, or would you rather have that child use the $300K in such a way that it will generate during their lifetime, maybe $3M dollars?  Can you visualize the difference that is going to make for your child’s life, for your grandchildren and maybe for many generations?

It is remarkable what a difference a little bit of planning can make for the future. If you name a child the beneficiary, then they get to choose to take a lump sum versus remainder of life expectancy distribution, and you have no choice. But if you choose to make the trust the beneficiary and set up an IRA sub-trust you can choose to help them much more than maybe they understand to start with. Choosing A Lump Sum Versus Remainder of Life Expectancy by making your trust the beneficiary of your IRA is one way you can help provide for your family for future generations.

Follow up with your estate planning attorney to ensure that your estate plan honors your wishes and is set up correctly. Contact us today and set up an appointment.

We offer a many different resources and pamphlets on the subject of creating, updating and implementing estate plans. We also offer a regularly scheduled seminar in our office to help people determine what the best options are for them in their estate planning needs. We hope you sign up for one of our seminars to help you find your best options.

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