When a person passes away without updated estate planning documents in place, it is possible not all of their wishes will be met and your beneficiaries may not receive everything they are entitled to, or exactly how you would prefer.
You can start to lay the groundwork in your financial plan to consider the legacy you want for your children, your grandchildren or a charity for years to come. This legacy can extend beyond a simple financial inheritance. If properly designed, it can be a part of a rich tapestry supporting the values you instilled in your family. The actions you take today for your financial plan will have an impact long after you are gone.
Stretch IRA Language
Without Stretch IRA language in your trust documents, your heirs could receive your qualified retirement monies (such as 401(k)’s, IRA’s, etc.) in a lump sum. Typically a lump sum distribution significantly increases the heirs tax bracket, meaning a larger percentage of their inheritance goes to taxes. A “Stretch IRA” typically spreads out the distributions over ten years, which can potentially help limit the taxable consequences of the inheritance.
Estate Planning Guidance
Meet Mike Taylor
Michael C. Taylor is a senior attorney at the law firm of Kirk, Huth, Lange, & Badalamenti, PLC specializing in estate planning and probate law, commercial litigation, and business planning. He also has expertise in real property taxation matters and represents commercial property owners in assessment appeals before the Michigan Tax Tribunal. Mike received his law degree from Wayne State University Law School and earned a bachelors degree in economics from Kalamazoo College.
Mike resides in Sterling Heights with his wife and three children. In 2015, he was elected mayor of the City of Sterling Heights and is currently the youngest big city mayor in the United States.
Kirk, Huth, Lange, & Badalamenti, PLC
19500 Hall Road, Suite 100
Clinton Township, Mi, 48038
Phone: (586) 412-4900
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Investment advisory services are offered through Summit Financial Consulting, LLC, an SEC Registered Investment Advisor Firm. SEC Registration does not imply a certain level of skill or training. Insurance products and services are offered through Summit Financial Consulting, LLC. Summit Financial Consulting, LLC and its representatives do not render tax, legal, or accounting advice. Summit Financial Consulting, LLC is not affiliated with or endorsed by the Social Security Administration or any government agency.
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