Roth IRAs and Illinois Estate Planning
As outlined in U.S. News and World Report, Roth IRAs have many appealing characteristics. They grow income tax free. Owners are not required to take minimum distributions at age 70 1/2. The income limit has been removed on Roth conversions, so anyone can convert a regular IRA to a Roth IRA in 2010. If tax rates increase, the benefit to converting now will be even greater.
It is important to remember that it is not your will or trust that determines who will inherit your Roth IRA. Roth IRAs, like all IRAs, include their own beneficiary designation. The owner of the Roth stipulates the beneficiaries of the account. In some cases, it will be the most advantageous to stipulate the owner’s estate or the owner’s trust as the beneficiary. That way, an estate plan including a will and a trust can be further utilized.
Contact an estate planning law firm for further information.
