Techniques in Focus: IRA Annuitization
Suppose you have a client with a taxable estate and a large IRA that isn't needed to support the client's lifestyle. This client faces two problems. First, Required Minimum Distributions will force the client to deplete the IRA, forcing them to pay income tax and lose the tax-free deferral opportunity. Second, inclusion of the IRA in the client's estate upon their death could result in taxes as high as 75 percent!
Structured properly, an IRA Annuitization, together with an Irrevocable Life Insurance Trust can eliminate all estate and income taxes to the beneficiaries, provide significant asset protection, and create a dynasty gift exempt from Generation Skipping Transfer Taxes.
We have prepared a one-hour class on this technique. We will show you how to recognize clients who will benefit from this type of planning, how to communicate the concept to the client and how to avoid the common pitfalls planners face when first offering this valuable planning option to their clients. Please call Krista Manne at (714) 619-9380 to schedule a class for groups of six or more financial professionals.
