IRA Trust

28 Dec Benefits of an IRA Trust

Planning ahead for our future is an important part of our lives. No one wants to work for the rest of their life if they can help it. An Individual Retirement Account (IRA) is usually a great way for people to plan for their future, but can be complicated if further planning for their IRA is not taken into consideration. Phelps Law, located in Scottsdale and Gilbert Arizona, not only protects your estate and the assets, but is experienced in protecting your investments such as an IRA.

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 assets will lose their protected status.

The way to protect your IRA includes using a specific trust established just for that. Under the subtrust specifically acting as an IRA trust, the assets will be protected for the beneficiary from divorce, creditors, lawsuits and other predators. This means that with the protection trust, the assets will remain in use for the beneficiary no matter the circumstances surrounding their lives.

Another benefit to the IRA trust is that it not only protects from outside individuals trying to gain the assets, but is also an advantage to the beneficiary, protecting them from their own unwise choices. Bad decisions, excessive spending, unwise investments, or overreaching spouses are all protected in the IRA Trust.  

Building a Legacy to Be Proud Of

When you work hard for years to earn an IRA and invest in your future, it’s not just your own future you are saving for. An IRA trust does not allow the beneficiary to cash it out and spend it as they see fit, but rather builds in discipline for them to sew into. Within the IRA Trust, you will be able to create stipulations of when and how much the beneficiary can pull out. This will allow them to continually be taken care of throughout their life with your IRA, and help them build responsibility and discipline with their finances. Not only can you establish the guidelines to ensure that the IRA is used in a responsible manner, but you can build up the investment to benefit them as well as their descendants.

Creating a strategic, beneficial estate plan comes with many aspects to consider. Protecting your assets, finances, and even your IRA is important. Good planning can benefit your loved ones, as well as impact future generations.

Contact Phelps Law 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)