Stretching an Inheritance Over a Lifetime--Part 2 of 2

The income taxes on a beneficiary when they inherit a retirement account can be astronomically high. A half a million IRA can add more than $50,000 a year to the beneficiary’s taxable income each year for a decade.

But what can you do?

You can leverage a charity’s tax-free status through a Testamentary Charitable Remainder Trust, provide an income stream to the beneficiary for their lifetime with greatly reduced taxes, and provide a charity or charities with much-needed funds. The only one who loses out is Uncle Sam. Most people are just fine with that. This is taken from a presentation at a national estate planning conference.

Part 1 focuses on the different techniques while part 2 covers questions and answers from other professionals in attendance.

Check out the YouTube video version here.