IRA Inheritance Rules Changed?

This video features Vincent Casiano, an Estate Planning attorney based in California.

California Estate Planning Attorney Explains

Video Transcript:

Rob Rosenthal: 

Have recent changes in the law affected inherited IRAs? What do you need to do? Let's ask California lawyer Vinny Casiano for this Ask the Lawyers: Quick Question.

Vinny Casiano: 

Oh, absolutely. Recent? Yeah, the SECURE Act that came into effect. It was something that just kind of blew, it blew up the estate planning world. When you say an inherited IRA, well, they're really aren't inherited IRAS, the way they used to be. It used to be children, spouses, anybody... You have an IRA, you make a beneficiary designation that... The person that you're leaving it to can then use their life expectancy, in almost all cases, to then take the minimum amount of money out of that IRA based on their life expectancy. And that can stretch out that IRA. There were trusts I did called stretch IRA trust for grandparents, leaving it to grandchildren where God, you can have money, and by the time that grandchild reaches 65, God... That would be millions and millions of dollars. Right? No. The SECURE Act changed all that. You have to be an eligible beneficiary now, it's a class of different people. If you're disabled, you still can do this. If you are less than 10 years younger than the person that died, you could do it. If you're a spouse, you can still do it but otherwise, you're gonna have to take out all of that money within 10 years, okay? So, it's totally different. I could talk about this for half an hour. If you have any questions, call me 'cause you really need to plan on this stuff.

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