Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
My husband and I (late fifties, retired) have rolled over six IRAs into Roths (each account worth only $2-3,000) and have made the individual beneficiaries of them our individual grandchildren (all ages 5 and under) so as to give the Roth accounts as much longevity as possible. However, these are outside our individual estate trusts and will be subject to estate taxes as I understand it. Here is the dilemma: if we make our trusts the beneficiaries of the Roths, we will lose the longevity of the Roth accounts which would greatly benefit our grandchildren over the extended period of their lives. (Our children will be the beneficiaries of our estate trusts.) Can anyone give us guidance on which is the better move?
Print the post  

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.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.