Cook Financial Group

10 common IRA mistakes

6. Naming a trust as a beneficiary

Estate planning attorneys frequently use trust as beneficiaries of IRAs. However, if the trust is not structured properly and does not qualify as a look- through trust ( a trust that allows distributions to be stretched based on the life expectancy of the oldest beneficiary), the IRA assets will most likely have to be paid out within five years after the owner dies. This eliminates the stretch option for beneficiaries and results in immediate taxation.

For more information contact us @ 225-437-7077 or 504-615-5750. www.cookfinancialgroup.com

10 common IRA mistakes

5. Having an outdated beneficiary

It's prudent to check your beneficiary designation forms periodically, especially if you've experienced any of the following life changes:

* Gotten married, remarried, or divorced
* Had a baby [ or a grandchild ]
* Gotten a new job
* Established a trust
* Had an illness or become incapacitated
* Inherited assets

While some states have laws that automactically revoke any beneficiary designation in favor of a former spouse upon divorce, many do not. If you fail to change your beneficiary after a divorce, your assets could wind up with your ex- spouse.

For more information contact us @ 225-439-7077 or 504-615-5750. www.cookfinancialgroup.com

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