THE CONSEQUENCES OF NAMING YOUR CHILDREN AND GRANDCHILDREN BENEFICIARIES
Forces larger distributions later when one probably can be in a higher tax bracket with less deductions
Forced Distributions = Ten Year Tax Curse that beneficiary must add to their current income for 10 years
- Higher taxes for children and grandchildren
- Government has targeted to take more out of wealthier people’s IRA’s
- Forced distribution can disqualify children out of social programs
- Children and grandchildren get access to large amounts of money with no spending control
- The stock market is unpredictable and can force someone to take RMD’s when the market value is down