Hi Jan,
Most retirement tax planning focuses on you and your spending years. But for many households, the bigger question eventually becomes: what happens to everything that's left?
This week's article looks at how tax strategy shifts once legacy becomes part of the picture. The rules that work well for generating retirement income don't always produce the best outcomes for heirs. The SECURE Act compressed the timeline beneficiaries have to distribute inherited IRAs, which changes how Roth conversions should be evaluated. Appreciated taxable assets carry a step-up in basis at death that can wipe out decades of embedded capital gains. And equal pre-tax inheritances often don't stay equal once taxes are applied.
There is no single right answer to any of this. But for families likely to leave assets behind, the planning decisions made during retirement have lasting consequences. This week's article walks through the key considerations.
| | | | When Retirement Planning Becomes a Family Affair Most retirees spend decades preparing for retirement taxes, but many never spend much time thinking about what happens to those taxes after they are gone. Early in retirement, the focus is usually on generating sustainable income and keeping taxes manageable each year. But for households likely to leave assets behind, the planning process eventually starts to shift.
By Retirement Researcher | | | | Tax Efficiency in Retirement Is Built, Not Found Taxes are one of the highest costs in retirement, and unlike market returns or inflation, they respond directly to how decisions are made. That responsiveness is the opportunity. But taking advantage of it requires more than isolated tax moves made one year at a time. It requires structure.
By McLean Asset Management
| | | | How to Leave More Wealth to Your Children After Taxes
Wade and Alex dig into the second half of Chapter 11 of the Retirement Planning Guidebook, covering how tax planning changes when a legacy is in view, including inherited IRA rules under the SECURE Act, strategic asset allocation across beneficiaries with different tax rates, estate tax thresholds and gifting limits, and how life insurance and irrevocable trusts factor in.
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