Many clients express concern that what assets that they leave their children will end up being owned by in-laws or, worse, spouses of in-laws who may remarry. My own father's Will gave everything, including my mother's assets, to his third wife! Luckily, she died first!

If you trust your children to own your assets outright, it's a no-brainer to let them own what they inherit from you "in trust" so that you can control the ultimate disposition of those assets as your children die in the future. So your grandchildren get the assets, rather than an in-law who could remarry and give it to a new spouse, or buy things with a new spouse who would get the assets if your in-law died first.

There are many ways to plan in this area, so please make an appointment to discuss the details.

Inherited Iras are no Longer Exempt from Creditor Claims

A recent United States Supreme Court case held that if you inherit an IRA, you cannot claim an exemption of it if you file for bankruptcy, as the rule used to be. The Justices reasoned that the inherited IRA was not a retirement fund of the person who inherited the IRA, as it was while their parents were alive. Thus, creditors can the IRA just as they can get a bankrupt persons' bank accounts and stock portfolio.

Creating an IRA Trust to hold the inherited IRA is the best way to help preserve the IRA inheritance. See me about this relatively new concept to preserve wealth for your family.