In our experience one of the most overlooked items as it relates to inheriting family wealth is the use of disclaimers which are now more powerful after the passage of The SECURE Act in late 2019. Disclaiming essentially allows a beneficiary to say “no thank you” to some or all of an inheritance thereby passing the assets that are disclaimed to the “next in line beneficiaries”. Now that retirement plan assets have only a 10-year payout for non-spouse beneficiaries, a surviving spouse might consider disclaiming a portion of their inherited IRA assets so the children effectively have two 10-year clocks for distributing assets (one at the first spouse passing and one at the second spouse passing).
At Brandywine Oak, we guide our families through these critically important and often irrevocable financial decisions to ensure their wishes are met during and after life.
To learn more about the use of disclaimer provisions, please read industry expert James Lange’s thoughts at: https://www-thestreet-com.cdn.ampproject.org/c/s/www.thestreet.com/.amp-retirement-daily/retirement-daily/your-money/cascading-beneficiary-strategy-the-best-estate-plan-for-most-married-ira-owners.