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What Are the Advantages of A Retirement Trust?

Updated: May 24

how to protect your retirement through a trust
Advantages of Retirement Trusts

Saving for retirement is often a delicate topic for many people. Whether they are worried about when to save, how much to save, or how to save, this is one topic that often has many people perplexed about their future. However, today, more and more people are turning to individual retirement trusts as a way to plan for their future. It has specific tax advantages, and long-term control benefits than many other retirement options, which can help you and your financial future.

How Does it Work?

Simply put, a trust is an estate planning tool that lets you set aside funds for certain beneficiaries to receive in the future. They can be managed by a third party, known as a trustee both during your lifetime and after your death.

An IRA, which is the most common retirement saving plan, prepare you for retirement and provide tax advantages until you are 70 ½ and need to start taking distributions from the account.

When these two come together in an individual retirement trust, you can enjoy the tax advantages with an IRA and the long-term control that comes with a trust. It allows you to bypass many of the complex IRS requirements and helps protect your legacy from asset seizure in the future.

How Do I Set Up a Retirement Trust?

The best way to set up a retirement trust is by meeting with an attorney that specializes in estate planning. While many individuals are able to take advantage of the unique benefits of retirement trusts, they aren’t necessarily for everyone. In most situations, individuals who have significant retirement assets, are tax-sensitive, have been divorced and remarried and those with blended families all find unique perks of retirement trusts.

An attorney will be able to go through your individual situation and make sure you have a trust put in place that not only benefits you but any trustees you may have as well. Since every situation and every individual is different, the insight from an estate-planning attorney is necessary if you want to make sure you are making the right decision for you and your family.

When planning for your future, the best thing you can do is rely on the expertise of estate planning to make certain that you are not only making smart financial decisions for your present situation but that you are setting up your beneficiaries even after you pass. Since trusts can be manipulated to fit your individual needs, together with an estate planning attorney, you can set up specific trusts that meet your requirements for today and your plans for the future.

Proper estate planning can ensure you will stay financially sound well into your retirement while you still maintain some control over how your heirs are receiving their inheritance, even after you are gone.

If you have questions about individual retirement trusts, you need to consult a professional attorney for more advice. Call the experts at Your Legacy Legal Care at (281) 885-8826, for all of your estate planning needs.

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