Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: JAFO31 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121144  
Subject: Re: beneficiaries of IRA and 401(k) Date: 4/14/2011 10:28 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
SirTas: <<<I changed the primary beneficiary to my two DDs (50% each). Of course, if I die tomorrow, they will inherit the money and will take care of their mother, but DW will be unable to waste our money in support of criminal enterprises overseas.

But does this have other consequences that I'm not taking into account?>>>

TMFPMarti: "The major difference is that your daughters will face Required Minimum Distributions (RMD's) starting the year after your death," [or be required to have the funds out of the IRA within five years after the eyar of yoru death] "while your spouse could treat the accounts as her own. Of course, given DW's history, it probably wouldn't preserve the funds longer."

You did not mention amounts, but generally speaking there is an unlimited spousal exemption, whereas assets going to others count toward lifetime exemption before estate tax might be due.

And as rad pointed out, DDs are not necessarily legally required to take care of your DW in the style to which she is accustomed.

Regards, JAFO
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Post of the Day:
Macro Economics

U.S. Stable, Europe Stalling
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement