Knowing One’s Options After Inheriting An IRA

On Behalf of Ezell Law Firm, LLC

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Oct 3, 2021

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Estate Planning

There may be a multitude of individuals in Louisiana and elsewhere who have preferences as to what happens to their assets after they pass on. In some cases, a person could choose to list a beneficiary who will inherit assets such as a Roth IRA when the time comes. Those who receive such an inheritance might not always what to do to protect their interests or what types of estate planning options might help them achieve such a goal.

Inheriting an IRA

Uponinheriting an IRA, one of the first things to note could include knowing that one may only have up to 10 years to empty the account in accordance with the terms of the Secure Act. There may be various options for those who receive such an inheritance, such as the option of moving funds into an inherited IRA account. Experts indicate that the Secure Act also carries various exceptions and as such, it could be helpful to seek insight on whether one might qualify for any exemptions.

Those who wish to withdraw funds from the account may find it necessary to address vital topics such as how to create a schedule for the timing and amounts of withdrawals. Certain factors may also influence one’s decisions for timing of withdrawals, such as the presence of Social Security benefits. Addressing the necessary factors could be vital to safeguarding one’s interests, but such a process can be somewhat complex in nature. 

Seeking advice on one’s options

Individuals who inherit an IRA and wish to know more about how best to implement such assets into theirestate planning goals could benefit from consulting with legal counsel for advice. An attorney can address a client’s wishes and concerns and provide insight on all his or her available options. By speaking with an attorney, a client in Louisiana could become better prepared to make decisions that best align with his or her future needs and interests.