Top 7 Mistakes In Estate Planning: Mistake No. 4

Mistake No. 4: Not considering the potential for double taxation on IRAs and other retirement plans.

Taxes on IRAs and other retirement plans can create a 70% tax before your IRAs can reach your children or grandchildren. IRAs and other retirement plans are taxed twice, once as part of your taxable estate, and a second time as they come out of the IRA as income. These taxes together can reduce your IRA by 70% unless you plan effectively.
The combination of a Retirement Plan trust and an effective plan to stretch out and protect an IRA over the lifetime of a younger person, such as a child or grandchild, can create significant tax savings and magnify growth for your family.