Estate & Legacy Planning

How will my beneficiaries inherit my IRA?

Your IRA passes to the beneficiaries named on the account, not through your will, so keeping beneficiary designations current is critical. Most non-spouse beneficiaries must withdraw the full balance within 10 years, which can create a large tax bill for heirs. Spouses and certain other beneficiaries have more flexible options.

How can I leave money to my children in the most tax-efficient way?

Strategies can include Roth conversions, naming beneficiaries carefully, gifting during your lifetime, and holding appreciated assets so heirs may receive a step-up in cost basis. The right mix depends on your account types, estate size, and family situation. FFA Wealth coordinates these decisions with your estate attorney and tax professional.

How can I give to charity from my IRA?

Once you reach age 70½, you can make a qualified charitable distribution (QCD) directly from your IRA to a qualified charity, up to an annual limit indexed for inflation. A QCD isn't counted as taxable income and can satisfy all or part of your required minimum distribution. It can be more tax-efficient than writing a check from your bank account.

How should I plan for long-term care costs in retirement?

Common ways to plan for long-term care include setting aside savings to self-fund care, traditional long-term care insurance, and hybrid policies that combine life insurance with long-term care benefits. Medicare generally does not cover extended custodial care, such as help with daily activities in a nursing home or at home. The right approach depends on your assets, health, and family situation.