Multi-Generational IRA Planning

Shielding Heirs From Avoidable Taxes

An IRA can be too much of a good thing if your children inherit the taxes as well as the money. Through proper planning, our attorneys can help spread out the distribution and minimize the tax burden on your children - or avoid the tax avalanche altogether by setting aside funds in a trust for the following generation.

The laws governing individual retirement accounts (IRAs) are frustratingly complex, not to mention the estate tax and income tax implications. The estate planning law firm of Cushing & Dolan, P.C., provides savvy solutions for leaving an IRA to your children or grandchildren in a tax-advantaged manner.

We offer multigenerational IRA planning to high net worth clients in Greater Boston, and throughout Massachusetts, New Hampshire, and beyond. Arrange a consultation today.

IRA Considerations in Estate and Tax Planning

One client with more than $1 million in his IRA died in December. The IRA passed to his wife, who disclaimed it, transferring the asset to their children. She died three weeks after her husband, in January. Reeling from losing both parents in a short span, the heirs also faced potential estate taxes for both calendar years. And as beneficiaries of the IRA, they were required by law to take IRA minimum distributions, further compounding the tax impact.

Through insightful estate planning before and after the husband's death, the lawyers of Cushing & Dolan were able to cushion the tax consequences for our client's children. We enabled the heirs to stretch the IRA over several decades, for income tax purposes, and the IRA was transferred without the mother's higher tax rate.

We can help you explore sound strategies for deferring or limiting the tax implications of IRAs and other assets, including the possibility of a generation-skipping trust to provide for grandchildren and avoid a big tax hit for your children.

Boston Estate Planning Attorneys

Call 617-523-1555 or contact us online to schedule a free estate planning consultation. We have eight convenient office locations in Boston and surrounding counties.