- Intended beneficiaries may and in most cases get disinherited or the estate will name alternative beneficiaries than what was intended.
- Expensive lawsuits and litigation when more than one beneficiary involved, but there is no designation as to who gets what.
- No stretch Ira for the beneficiaries, meaning less favorable after death rules on distribution will apply depending on when the IRA owner died.
- 5 year rule will apply to inherited Roth IRAs. Since the Roth IRA has no lifetime RMD (required minimum distribution), a Roth IRA owner is always deemed to have died before his required beginning date because there is no required beginning date.
- No post-death rollovers from company plans to non-spouse beneficiaries. That only applies when there is a designated beneficiary.
- Voids IRA trust planning. The trust will fail as a see-through trust.
- Post death disclaimers may not work out according to plan
- Can negate divorce agreements. The ex-spouse may end up being the beneficiary.
- Can be subject to probate and contests. This will result in an unintended beneficiary.
- Can trigger default provisions that man direct eh IRA to an unintended beneficiary.
Foresters competitive scholarship program. They specialize in low face amount non-med term and final expense whole life. This would be a great addition to existing college planning and a great fit for families without the resources for larger college funding plans.
Income Annuity Rates will Not Change on Monday, June 1, 2015