IRS Extends RMD Relief for IRA Heirs 2024 Estate Planning


by Theresa de Leon, EVP, National Director of Sales at Arden Trust Company

Financial advisors, tax professionals, and clients who inherited IRAs in the past three years have received a welcome extension from the IRS. On April 16, the IRS and Treasury Department granted an additional year without required minimum distributions (RMDs) for beneficiaries, offering more time for asset growth without tax burdens.

This extension, in line with the 2019 Secure Act, allows IRA beneficiaries to avoid immediate RMDs and offers a strategic window to explore trust options to minimize estate taxes and future RMD issues. Theresa de Leon from Arden Trust highlight the benefits of this extension, including the opportunity for financial growth and strategic tax planning.

De Leon advises using trusts to mitigate tax impacts and manage complex family dynamics, ensuring a smoother estate planning process.

As we approach 2025, it's crucial for IRA owners and their advisors to prepare for the eventual implementation of the 10-year distribution rule. Strategies such as setting up charitable remainder trusts (CRTs) could offer tax-exempt benefits and structured payouts for beneficiaries.

In estate planning, considering family dynamics is key. De Leon emphasizes understanding each client’s unique situation and objectives, addressing not only tax consequences but also emotional factors that influence trust decisions. This holistic approach ensures that clients can make informed and beneficial estate planning choices.

Read the full article by Tobias Salinger on Financial Planning here.