Annuity

Why are IRA Beneficiary Designations So Important?

Published on: January 22, 2020 | By McCulloch & Miller, PLLC

If you pass away without naming beneficiaries in your will, it can create legal entanglements for your heirs.

If you decide to purchase a life insurance policy or to put some money into a new deferred annuity contract or Individual Retirement Account (IRA), you need to complete the beneficiary form.

However, Investopedia’s recent article entitled “Why Your Will Should Name Designated Beneficiaries” says that you may just name a person as a beneficiary, without fully appreciating this aspect of your estate planning.

Proper Planning for the Distribution of an IRA

Published on: April 10, 2018 | By McCulloch & Miller, PLLC

The rules for IRA distributions can be complicated. Unforeseen circumstances can make things even more complex. Understand the rules, so the money goes where you want it to.

What happens if you designate each of your two adult children as 50/50 beneficiaries of your IRA, and then one of them dies? Will the funds go to your grandchildren?

MarketWatch answered that question in its article, “Who gets your IRA when you die? It’s not so simple.” The answer to what happens to the IRA money is dependent upon what the beneficiary designations say and when one of the children passes away. The beneficiary designations state how it will be distributed. However, that may not be what is written in your will.

The Many Methods Of Leaving An Inheritance in Texas

Published on: January 22, 2014 | By McCulloch & Miller, PLLC

People who take good care of their children take good care of their money, and people who take good care of their money take good care of their children.

Money can bring about both the good and the bad, depending on how one uses it. So you can imagine how concerning it is for parents and grandparents to make the best decisions for their heirs regarding their inheritances. A recent Forbes article titled “What Can We Do With Money For Our Kids?” explores a few tools that may help.

As an alternative to gifting money outright to your children or grandchildren, the article explores Roth IRAs, 529 plans, annuitized gifts, and even UTMA/UGMA accounts. While there are many wealth transfer tools and methods, the key is asking yourself a few important questions upfront.