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Important decisions for your Roth IRA and estate planning

Planning for the future is always a good idea for anyone in Hudson County. Whether it’s an estate plan, a trust or a will, it’s always smart to prepare for the future as early as a person can. However, a good estate plan is the key. Making the right choices regarding one’s future can make all the difference in whether or not a person leaves his or her family or other loved ones in a desirable position.

There are several options when it comes to setting up a trust as part of one’s estate planning. So what are some of the things one should consider when he or she sets up a trust and just how does a Roth IRA fit into those plans? According to one New Jersey estate-planning attorney a Roth IRA must have at least five years of existence before anything can be withdrawn without a tax penalty.

If a couple has decided that the remaining spouse is the primary beneficiary, who should be the secondary one, the children or the trust that has been set up for them? The trust can be the secondary beneficiary, which may a good idea if the children have special needs or are still minors. It’s also important to note that this type of trust must meet certain requirements, including: it must be irrevocable, it must be set up following state laws and the identity of the beneficiaries must be known.

There are so many things to consider when a person is planning for his or her long-term future. An experienced estate-planning attorney knows all of the important details of setting up a trust, which can help ensure that a person gets the right framework in place for his or her estate plan.

Source: The Star-Ledger, “Biz Brain: Estate taxes, Roth IAs and beneficiaries,” Karin Price Mueller, July 22, 2013

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McCurrie McCurrie & McCurrie, L.L.C.
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Kearny, NJ 07032-3010
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