Post by thumbcatcher on Jun 26, 2020 0:02:43 GMT -5
I'd like to bring to your all's attention some things that deeply concern me. I've tried to word this post a couple times and get timed out just trying to write things to make sense to get across what I want to say, so I will just put some ideas out in a couple post that just might be of help or concern to some of you. So here goes?
You work all your Life to accumulate property, money, retirement plans, vehicles, guns, traps and for us Traps is a big one, so what happens when you pass away. So I'd like to give it a shot at a few subjects in this area. Here goes.
How many people are familiar with the term Inherited IRA. a recent new Tax law went into effect in 2020. I would highly recommend you google it and read up on it. I shake my head in disbelief but its real and I sure wish it would get changed. Basically the new law says that if you Inherit and IRA, the beneficiary or beneficiaries have to withdraw all the funds out within 10 yrs. Think about that what the tax situation would be and what happens after the 10 yrs how will your spouse survive? Prior to this new law the great benefit was the spouse or beneficiaries could take the income for life based on the normal IRS withdraw rules of attained age etc.
I will post more after the Inherited IRA is discussed.
Post by thumbcatcher on Jun 29, 2020 21:23:51 GMT -5
I've not been a fan of the Roth but every ones tax situation is different going through life, To switch now would be to costly. All of this I bring Up I am only trying to get peoples attention: If you have a investment advisor by all means bring this subject up or I would think they should.
Regretfully there isn't anything that I know of that can be done I spoke to a CPA and a Tax Attorney . I do intend to contact a few people I know within Farm Bureau and ask them if they have considered Lobbying against this new Tax Law. I guess I should also say that after loosing my brother last year and my Dad early April I have had to experience things that brought up a lot of these subjects, that and I was in the insurance business for 35 yrs.
It just doesn't make sense other than greed by the Government to make people that have worked all there life to Squirrel away money to live on and pass on to there spouses or children to be forced to take all the distribution within 10 yrs. Think of all the small businesses, large business with corporate money in the millions and especially Family Farms.
My next subject will Be Beneficiaries I will post when I have a little more time.
Post by thumbcatcher on Jul 6, 2020 15:23:45 GMT -5
Beneficiaries? I know for most when you use the term Beneficiaries your probably thinking of Life Insurance, but Beneficiaries is listed on most all major investments including Life Insurance, and Retirement plans, Brokerage accounts Wills and also Trust.
Far to often we fail to review Beneficiaries and after someone passes away then the difficulties turn up. Take the time to review rather its your own or perhaps your responsible for a relative or Parent. The Spouse part is easy most people want there spouse as the beneficiary and that is fine,, but Absolutely make sure you list ""Contingent Beneficiaries" were appropriate
When ever you address beneficiaries make sure you know what the term Per Stirpes means.. Easiest to Google for explanation. Lets say you list multiple children down and one of those Listed passes away then with out that legal terminology the person who passed there family would receive nothing. Some insurance companies may have other wording but for most this is the word you want to make sure to understand.
Please keep in mind that the term Per Stirpes also applies within Will's and Trust.
I will be the first to say it is not my intent to give legal advice, by all means what I have addressed should be addressed with your Attorney regarding your Will or Trust, Investments and Life Insurance
My Mom passed some time ago and it took a long time for me to convince my Dad to review his Will and Trust he had, as this was all set up a long time ago, and I will say the original attorney did not do a good job as he left loop holes that Thank the Lord we were able to fix before my Brother past, One being the per Stirpes clause which was not included in the orginal documents. my Sister in Law and family would not been included that would have been beyond terrible. So I have given you all some information and its up to you to carry it out I don't care how young or old you are this information effects you and your family. We get busy in life and put things off.
My next subject and probably final subject will be on Wills and Trust when the time is right.
I'm going thru that stuff right now with my retirement and making sure my daughters receive my wife's and my money when we're gone and taxes and so forth and what it takes to close out my account for them. It's a lot to take in.