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Estate Planning Center |
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Learn About The Law Offices of Raymond B. McFalone
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Roth
IRA - The Unsung Benefit
Unlike traditional plans, the Roth IRA also provides a way to pass a large amount of money, without probate, at your death. With a traditional IRA, you must start making withdrawals after you reach age 70 1/2 which reduces the total value of your IRA. But a Roth IRA has no mandatory withdrawals. That means you can let the account keep accumulating income, tax-free, until your death, when it will pass to the person you've named. The only constraints on the amount of money you can pile up are the contribution limits and your investment choices. Passing this money to your heirs is easy, and it doesn't cost a dime. All you do is name someone, on the form the account custodian gives you, to inherit whatever is in the account at your death. If you name more than one beneficiary, they'll split the money equally unless you specify otherwise. You do not mention the IRA in your will or living trust; the beneficiary form takes care of everything. If you are considering naming your living trust on the beneficiary form, you should seek the advice of an attorney before doing so. After your death, the beneficiary will need only a certified copy of the death certificate to claim the funds, quickly and without probate.
The
Law Office of Raymond B. McFalone
Raymond
B. McFalone
Email: ray@raymcfalone.com
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