This was the best hour and 3 1/2 minutes I've spent listening to this type of strategic planning ever. You've explained this so well that I could follow you with no problem. Thank you so much!
@janteve6509
5 ай бұрын
Your talk is a real benefit to me. I’m going to redo my trust this year for perhaps the last time(widow,76 yrs, no kids). I’m trying to😅 find out how to know how to distribute my wishes in the Trust when I have no idea how much money will be left when I die. My estate attorney cannot advise me on taxes, my CPA does my annual taxes. Is there a specialist like you I should search for? Net worth today without all the expenses of caregivers and CCR facilities is significant.
@hollycrovo8390
5 ай бұрын
Thanks so much for this explanation. I have been trying to understand this for a couple of years. Great idea using two different types of trusts.
@brandonglosson1628
5 ай бұрын
Thanks for covering this complex topic Paul! The final example was a great way to put everything together!
@bradleyhasse5220
5 ай бұрын
This man is doing gods work helping other people find peace and security they may have otherwise not had
@ynlee354
Ай бұрын
Thank you Paul! I love all your videos!
@southerngirl773
5 ай бұрын
Thank you. Very information but confusing! A lot to take in!
@jojo-pq5lo
5 ай бұрын
I was told as a beneficiary, (daughter)I would have to drain the funds within 10 years and because my mother already had been taking RMD, I would need to continue taking RMD starting within the very next year of death. I will need to fill out 1099 as this is considered income and will probably end up paying taxes. I wish they hadnt changed these rules from a few years ago!
@janc.8197
5 ай бұрын
If you are the beneficiary of an IRA, then the investment company would transfer it into an inherited IRA account in your name. You just withdraw money each year (they should tell you the minimum amount) and the investment company sends you a 1099-R each Jan-Feb for the amount you withdrew the previous year and the amount of taxes you had withheld to use for your tax return. You do not fill out a 1099.
@janc.8197
5 ай бұрын
@@jojo-pq5lo Was your mother already having to withdraw required minimum distributions? If so, you will have to take a required minimum distribution yearly beginning in 2024 (and you can withdraw more than that, of course). You do not have to take a distribution for 2023, the year your mother passed away. If she was younger than the age for RMDs to begin, then you have the full 10 years to withdraw all the money and do not have a yearly required minimum. The downside of waiting until the 10th year to withdraw it all would be that it could put someone in a much higher tax bracket. Not sure what the Jan 2024 RMD letter was about. Was it meant for your mother? Hopefully she had already taken her RMD for 2023 before she died, because that would have been necessary for her, not for you.
@jojo-pq5lo
5 ай бұрын
@@janc.8197 yes she had been taking her RMD on a regular basis. Thank you so much for your replies !
@jojo-pq5lo
5 ай бұрын
@@janc.8197 Yes she had been taking her RMD every year. The letter that came was a reminder to take her RMD for the 2024 year except my mother passed away in December 2023. They didn't know she passed away. I'm thinking it's ok to disregard the notice because the account is in my name now and I will make a withdrawal sometime before the end of 2024. Thank you for your replies !
@michaelblazin4093
5 ай бұрын
The IRS will not let a beneficiary use her smaller tax rate to pay the tax on the IRA distribution if she does not receive it directly reported on a K-1. I had thought of that when I set up my combined accumulation/conduit trust. I found it was a big “don’t even think of it.” The distribution can only use the great protections of the irrevocable trust if it stays in the trust and the trust pays the tax on the trust tax schedule.
@macoeur1122
5 ай бұрын
Paul, I inherited 1/4 of my 89 year old father's Traditional IRA in 2022 and everything I checked online...and with the IRS (a real person who asked me all of the pertinant questions) and even my financial advisor....they have all agreed that no RMD's are required...and that I just need to have it all out by the tenth year following my father's death. He had obviously already been taking RMDs long before he died, Now your information is making me nervous. Are you "sure" this is right? I've been taking just enough to keep me from bumping into the next tax bracket...I may be taking clise to what the RMDs "would be".... but I feel like I'm now unsure again...and don't like the feeling
@janc.8197
5 ай бұрын
There was an exception made for 2023, because it took awhile for the IRS to get the rules clarified (and there was definitely confusion). My husband went ahead and withdrew some anyway because he needs to clear out the inherited IRA in 5 years before his own RMDs begin (also inherited this IRA in 2022 from a parent age 92)). But my understanding is that 2024 the rules will be applied and one must take a distribution (if the person was already receiving RMDs) or else have a penalty. I looked into this before the end of 2023 to be absolutely certain. Our investment company (Fidelity) tells us what the rmd is, but he is taking out more than that anyway.
@macoeur1122
5 ай бұрын
@@janc.8197I hope I'm not going to have to call the IRS all over again. I was walked through a worksheet by one of the IRSs own representatives at the time, and was clearly told that, based on my answers I had 10 years to distribute the entire thing and that I could take it all at any rate and at any time...including the last day. She said nothing about any possibility of a change in rules....My financial advisor is not aware of any change either...AND...your comment just prompted me to go to the IRS website and see what I could find. So far nothing that "sounds" like anything has changed.
@macoeur1122
5 ай бұрын
@@janc.8197 The only thing I could find on the topic (found on the Charles Schwab Website): "As of our publishing date, the IRS has proposed regulations that-if made into final regulations-might impact beneficiaries who are not eligible designated beneficiaries. If the original owner of the traditional IRA (or SEP or SIMPLE) passed away in 2020 or later and also on or after their RBD, then annual RMDs would be required during the 10-year period that the noneligible beneficiary has to deplete the entire IRA. But the IRS has provided relief that no annual payment is required in 2021, 2022, or 2023. Stay tuned in 2024 if you inherited an IRA from someone who died on or after their RBD Conversely, if the original IRA owner had not yet reached their RBD, then an annual RMD is not required even if the beneficiary is not an eligible designated beneficiary. Given that these rules are in flux now, please consult with your tax advisor if you have questions about whether you should take a RMD from your inherited IRA before December 31, 2023."
@anthonyflores9336
5 ай бұрын
Just a note, figure out how to have a high definition thumbnail for live streams. In my KZitem feed the thumbnail is super gritty. Appreciate the info!
@johnm2178
5 ай бұрын
Thanks for sharing this.
@chanks9315
4 ай бұрын
What is a BDA IRA? I've heard it is the proper terminology for an Inherited IRA. That person gave the definition as "Beneficially Designated Account" but Fidelity calls it "Beneficiary Distribution Account" and that each non-spouse beneficiary of an IRA must open a BDA IRA account to receive distributions from an IRA. --- Every time I think I'm getting a handle on this, the herd of squirrels arrives to scramble my brain.
@ruslanarossi9749
4 ай бұрын
Do the distributions over the 10 years have to be equally divided ? Can I take a smaller amount in in years 1-5 and more 5-10 ?
@amerlin388
5 ай бұрын
Can the recipient of an inherited IRA roll it over into a Roth IRA within the 10 years. What if the recipient is a 5 year old granddaughter with no (other) taxable income?
@jonathansorkin1791
5 ай бұрын
Do both the conduit and accumulation trust provide asset protection (ie. From Creditors, divorce). I thought I read that only accumulation trusts provides creditor protection. Please explain.
@yukonheart
5 ай бұрын
Videos too long need to condense
@hollycrovo8390
5 ай бұрын
Disagree! Very important information that needs to be explained very carefully.
@ld5714
5 ай бұрын
Then fast forward to what you want to hear. These are broad topics and must be covered thoroughly.
@johnclarke4701
5 ай бұрын
Agree. Speaker could tell the same info without so much lead up (trying to get his head started on telling us something).
@richj1134
5 ай бұрын
If you understand this info it could be condensed perhaps. If you are not then slow is probably better. I have listened to a number of his videos and he has provided a wealth of information on various subjects
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