I am confused around the rules for changing TOD's (transfers on death) and Designated Bene for IRA accounts. Particularly with regards to getting spousal approval for making said changes. In addition I am unsure if it makes sense to put a TOD of one spouse for another spouse, Wouldn't the fact that they are spouses mean by default the other spouse will get the assets? In effect a default TOD?
Flowchart to show an existing client how their current beneficiary designations would work. ex. spouse as primary, can choose inherited, own, disclaim. Children as primary/contingent choose inherited or 5 year rule. Other flowchart might show no primary or no contingent designated or what if minors are beneficiaries.
Beyond annual exclusion gifting, when do clients need to file an annual gift tax return? 5 year advanced funding of 529 plan in community property states, Dynasty Trusts, etc.
It would be nice to have a flow chart that goes multiple levels deep to help clients visualize the difference between per stirpes and per capita. I attached an example that Schwab has, but I think it should go even deeper in order to show clients multiple scenarios especially when each potential beneficiary has a different number of heirs of their own.
Flowchart should go into impact of per stirpes vs per capital in beneficiary designation.
And add yes/no decisions for whether the children are natural or adopted because often custodian bene forms like Schwab do not allow Per Stirpes with non-natural children causing unworkable solution without an attorney to write special bene designation.
Include beneficiaries such as charitable organizations, S-Corp, etc.
It would be great to have some type of flow chart to help clients understand the different potential outcomes of titling a taxable account as JTWROS, JTIC, JTBE (where applicable), and CP (where applicable).
This would be helpful!
https://www.kitces.com/blog/successor-beneficary-required-minimum-distribution-10-year-rule-secure-act-eligible-designated-beneficary/?utm_source=rss&utm_medium=rss&utm_campaign=successor-beneficary-required-minimum-distribution-10-year-rule-secure-act-eligible-designated-beneficary&utm_source=Nerd%E2%80%99s+Eye+View+%7C+Kitces.com&utm_campaign=b376dd7fb7-NEV_MAILCHIMP_LIST&utm_medium=email&utm_term=0_4c81298299-b376dd7fb7-48068197. Please do this!
"When are clients required to file an annual gift tax return?" (suggested by Trudy on 2019-03-20), including upvotes (2) and comments (0), was merged into this suggestion.
"Current IRA Beneficiary Designations Flowchart" (suggested by Eric Blake on 2019-02-23), including upvotes (15) and comments (2), was merged into this suggestion.
"Per Stirpes vs. Per Capita" (suggested by Matthew Nelson on 2019-05-23), including upvotes (14) and comments (1), was merged into this suggestion.
"Joint account registration choices" (suggested by Kevin on 2020-09-04), including upvotes (5) and comments (1), was merged into this suggestion.
"TOD and Designated Bene Guide" (suggested by Donald Boyd on 2019-02-04), including upvotes (3) and comments (0), was merged into this suggestion.
"Successor Beneficiaries" (suggested by DEDE on 2020-10-02), including upvotes (1) and comments (0), was merged into this suggestion.
"Issues to consider in gifting or transferring property to adult children" (suggested by Elissa Wurf on 2022-09-08), including upvotes (1) and comments (0), was merged into this suggestion. Original language from this merged suggestion: "Moderate income clients can be tempted to give or lend money to adult children to an extent that threatens their own retirement, or may want to add a child's name to their deed on their home (thereby losing the step-up in basis). HNW clients may want to sell investment property at below-market prices to adult children, triggering a host of undesirable tax consequences (disallowed loss to the client, if there is a gain on sale, it is taxed as ordinary rather than capital income, if the child sells at a gain, they can use the parent's disallowed loss but some of it may be permanently lost, etc)."
Life insurance and annuity beneficiary designations (and the triangle of owner, annuitant, beneficiary) making sure they are set up in a way to avoid unintended consequences. And the negative impacts that can occur when making changes (gotchas to look out for.)
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