Many individuals in Massachusetts and elsewhere may consider it vital to have a strategy in place to provide their loved ones with the necessary support after they pass on. In some cases, a person may have the option to use assets stored within an IRA to provide support to beneficiaries for extended periods of time. However, with changes to the rules that govern inherited IRA accounts on the horizon, those who wish to plan for the future may find it advisable to seek guidance on other estate planning options, such as setting up a trust.
According to reports, the U.S. House of Representatives recently voted in favor of legislation that will place a time constraint on what is known as a stretch IRA. Over previous years, beneficiaries of a stretch IRA were able to receive funds from the account while benefiting from tax deferral for extended periods. However, once the bill goes into effect, a provision will require certain beneficiaries to distributed the assets within an inherited IRA within a decade of the owner's passing.
However, this provision might not affect all beneficiaries. Understanding how the changes might affect one's current estate plan could prove vital to knowing where adjustments may be necessary. In some cases, a similar scenario could prompt a need to revisit one's original plans and choose a different path entirely, but the process could seem stressful and intimidating.
The rules that govern estate planning options such as a trust or inherited IRA may change from time to time and these changes may influence the decisions a person makes substantially. Those who wish to gain a better understanding of any changes to estate planning laws could benefit from consulting with an attorney as soon as possible. An attorney can help a client in Massachusetts better understand each of the options available and provide guidance in making informed decisions about his or her plans for the future.