Advantage of sole beneficiary of IRA?

#8 11-15-2003, 11:09 AM

It also can be a function of the local jurisdiction as well, not knowing SC,
trusts offer protection in estate and probate planning in Massachusetts that
make them worth the effort.

Again the cost of proper planning sooner out weighs the cost of pain and
frustration later.

"HW "Skip" Weldon" <skip5700removethis[at]hotmail.com> wrote in message
news:hrl9rvseoqif22acm8rccqapbre7vojvkr[at]4ax.com...
- quote -

> > BMS wrote:
> > After your wife being the primary beneficiary , you would want to look
into
> > a trust after that. You can get multigenerational or stretch IRA
provisions
> > that would the IRA to pass through to grandchildren.
> Keep in mind that when spouse inherits, he/she can name new
> beneficiaries - for example, the children. Those new beneficiaries in
> turn can elect life income when spouse dies.
> Point: There is mucho stretch already provided without the complexity
> and cost of a trust. (Trusts can be an effective consideration for
> some, but only after understanding what is already available.)
> -HW "Skip" Weldon
> Columbia, SC

#7 11-14-2003, 12:29 PM

- quote -

> BMS wrote:

> After your wife being the primary beneficiary , you would want to look into
> a trust after that. You can get multigenerational or stretch IRA provisions
> that would the IRA to pass through to grandchildren.

Keep in mind that when spouse inherits, he/she can name new
beneficiaries - for example, the children. Those new beneficiaries in
turn can elect life income when spouse dies.

Point: There is mucho stretch already provided without the complexity
and cost of a trust. (Trusts can be an effective consideration for
some, but only after understanding what is already available.)

-HW "Skip" Weldon
Columbia, SC

#6 11-14-2003, 11:43 AM

To your point, if the original poster is concerned about this issue, this
should be done with proper estate planning.

The will, durable power of attorney, trust work and living will (healthcare
proxy if you are in Massachusetts) should also be done by a qualified estate
attorney.

"RTC" <send.spam[at]nowhere.com> wrote in message
news:boc5ep$9v6$1[at]terabinaries.xmission.com...
- quote -

> BMS wrote:
> > After your wife being the primary beneficiary , you would want to look
into
> > a trust after that. You can get multigenerational or stretch IRA
provisions
> > that would the IRA to pass through to grandchildren.
> > Running an IRA through a trust and getting the stretch effect is a
> tricky proposition that depends completely on your state law, and the
> cleverness of the attorney who drafted the trust. I've seen a
> check-list of half a dozen provisions that must be in the trust in order
> to get a good IRA stretch. Be certain to consult your attorney on this
> one...

#5 11-06-2003, 10:23 AM

BMS wrote:

- quote -

> After your wife being the primary beneficiary , you would want to look into
> a trust after that. You can get multigenerational or stretch IRA provisions
> that would the IRA to pass through to grandchildren.
Running an IRA through a trust and getting the stretch effect is a

tricky proposition that depends completely on your state law, and the
cleverness of the attorney who drafted the trust. I've seen a
check-list of half a dozen provisions that must be in the trust in order
to get a good IRA stretch. Be certain to consult your attorney on this
one...

#4 11-05-2003, 05:25 PM

- quote -

> From: Leslie Weinberg artsoul[at]nyc.rr.com
> Date: 11/5/03 6:02 AM Pacific Standard Time
> Message-id: <7j7qb.101200$pT1.97953[at]twister.nyc.rr.com
> Actually, the surviving spouse can name the children as beneficiaries
> after the death of the first spouse. They can either be named jointly
> or the IRA can be split into a piece for each child. The life of the
> IRA for each child will then be based on THAT child's life expectancy.

True!

But what happens if there is a simultaneous death?

#3 11-05-2003, 01:02 PM

Actually, the surviving spouse can name the children as beneficiaries
after the death of the first spouse. They can either be named jointly
or the IRA can be split into a piece for each child. The life of the
IRA for each child will then be based on THAT child's life expectancy.

PaulMaf wrote:
- quote -

> > From: peter[at]peteryates.com (PGY)
> > Date: 11/4/03 2:10 PM Pacific Standard Time
> > Message-id: <53de21d5.0311041316.768aa8bd[at]posting.google.com> > Is there an advantage in naming my wife the sole benficiary of my IRA?
> > I would prefer to name her as the primary beneficiary, with my kids as
> > secondary beneficiaries, but I sense there is something to be gained
> > by the former, but I can't figure out what that might be.
> Even with your kids named as secondary beneficiaries. your wife would still be
> the primary and sole beneficiary of your IRA if she should outlive you.
> So it is exactly the same as if you name your wife and no one else.
> What you do do by not naming your chldren as secondary beneficiaries is mess up
> an opportunity they would have to keep the IRA alive over their life time if
> your wife would also die.

#2 11-05-2003, 12:04 PM

After your wife being the primary beneficiary , you would want to look into
a trust after that. You can get multigenerational or stretch IRA provisions
that would the IRA to pass through to grandchildren.

"PGY" <peter[at]peteryates.com> wrote in message
news:53de21d5.0311041316.768aa8bd[at]posting.google.com...
- quote -

> Is there an advantage in naming my wife the sole benficiary of my IRA?
> I would prefer to name her as the primary beneficiary, with my kids as
> secondary beneficiaries, but I sense there is something to be gained
> by the former, but I can't figure out what that might be.

#1 11-05-2003, 09:06 AM

- quote -

> From: peter[at]peteryates.com (PGY)
> Date: 11/4/03 2:10 PM Pacific Standard Time
> Message-id: <53de21d5.0311041316.768aa8bd[at]posting.google.com
> Is there an advantage in naming my wife the sole benficiary of my IRA?
> I would prefer to name her as the primary beneficiary, with my kids as
> secondary beneficiaries, but I sense there is something to be gained
> by the former, but I can't figure out what that might be.

Even with your kids named as secondary beneficiaries. your wife would still be
the primary and sole beneficiary of your IRA if she should outlive you.

So it is exactly the same as if you name your wife and no one else.

What you do do by not naming your chldren as secondary beneficiaries is mess up
an opportunity they would have to keep the IRA alive over their life time if
your wife would also die.

11-05-2003, 09:06 AM

PGY wrote:
- quote -

> Is there an advantage in naming my wife the sole benficiary of my IRA?
> I would prefer to name her as the primary beneficiary, with my kids as
> secondary beneficiaries, but I sense there is something to be gained
> by the former, but I can't figure out what that might be.

I am unaware of any disadvantage to naming a Contingent
Beneficary. The contingent beneficairy has absolutely NO
rights or claims on the IRA or Life Insurance as long as the
Primary is alive.
On the other hand, failing to provide a Contingent Bene, could
result in disaster in the event that the Primary pre-deceases the
Owner............

Cal Lester CLU

--
Seen it all, done it all, can't remember most of it

This signature file is generated by Pick-a-Tag !
Written by jeroen[at]vanbaarsel.net

#-1 11-04-2003, 09:10 PM

Is there an advantage in naming my wife the sole benficiary of my IRA?
I would prefer to name her as the primary beneficiary, with my kids as
secondary beneficiaries, but I sense there is something to be gained
by the former, but I can't figure out what that might be.

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