trusts

Estate Planning for Millennials

Estate Planning for Millennials

With hitting the work force and starting families (not to mention destroying entire industries), Millennials have a lot on their minds. Estate planning may not even be on your radar.

Besides, isn't estate planning just for older, richer folks? Do you even need an estate plan when you're young and poor?

Do Millennials Need an Estate Plan?

Estate planning is beneficial for everyone, including Millennials.

Different types of plans may be better suited for people of different ages or different stages of life. However, any adult will benefit from having an estate plan.

So, what should a Millennial's estate plan look like? What documents should you have? What things do you need to consider before deciding on an estate plan?

Family is one of the most important factors to consider when developing an estate plan. For that reason, we are using our next few blog posts to discuss estate planning considerations for Millennials in a variety of family situations. You can read each article by clicking the links below:

Will an IRA Affect My Estate Plan?

Will an IRA Affect My Estate Plan?

Even if you set up a trust, you will continue to individually own your IRA and list individual beneficiaries for it. Your trust should not be the owner of your IRA, and naming your trust as the beneficiary of your IRA accounts can cause unanticipated consequences.

However, an IRA can be an important part of estate planning, so it is important to understand what options are available and what you can do to provide the maximum benefit to you and your loved ones and other heirs.

How can I make my trust a beneficiary of an IRA?

If you do want your trust to be the beneficiary of an IRA, it is important that the trust qualify for the “look-through” rule. This rule says that the IRS must be able to determine whether there is a designated beneficiary and who that beneficiary is. The four requirements that the trust must satisfy are as follows: