Estate Planning with a Self-Directed IRA

Estate Planning with a Self-Directed IRA

Self-Directed IRAs are a great way to take control of your estate planning and secure your financial future. Investing through these accounts allows you to diversify your portfolio and put your money to work in a variety of ways. Self-Directed IRAs also have the added benefit of offering tax advantages, making them an attractive option for many people. In this blog post, we’ll discuss what investors typically do when thinking about diversifying investments within Self-Directed IRAs and maximizing their potential returns on investments.

Do Self-Directed IRAs Help with Estate Planning?

Self-Directed IRAs can be a great estate planning tool with many advantages. With a Self-Directed IRA, you have complete control over the assets in your retirement account and are able to diversify your investments into real estate, private businesses, and other alternative investments. A Self-Directed IRA provides flexibility when it comes to navigating tax implications on distributions throughout retirement and often minimizes tax liability during taxation of beneficiaries after death as well.

The primary benefit of a Self-Directed IRA for estate planning is that they can give you some options when naming a beneficiary on the account. By having an IRA or Roth IRA set up prior to death, these funds can potentially move where you want them to move—however, this is not specific investment advice. It’s important to remember that all states have different estate planning and probate laws, which means you’ll want to consult with a lawyer before you set up your estate in any specific way.

However, even with that said, it’s also important to remember that a Self-Directed IRA can give you greater amounts of control over what’s in your retirement account. For example, a Self-Directed IRA allows for investing in real estate, precious metals, and more. If you want these to remain in a retirement account which may have a specific beneficiary, for example, that can be your right.

Why Self-Directed IRAs?

After talking about estate planning, we should also address why people use Self-Directed IRAs in the first place. For starters, we’ve addressed one key point: investors turn to Self-Directed IRAs for the greater control and flexibility they provide over traditional approaches to retirement accounts. These Self-Directed IRAs allow investors to diversify their retirement portfolios by investing in alternative asset classes such as real estate, private businesses, precious metals, cryptocurrency, and more. The ability to invest tax-free or tax-deferred growth is another key benefit of Self-Directed IRAs.

With the right strategies, investors can help maximize their return on investment while minimizing the associated taxes, making it a potentially lucrative option for retirement planning. Self-Directed IRA investors also appreciate the freedom to choose investments that align with their values and goals. Whether they’re interested in renewable energy or impact

What are the Next Steps?

If you’re thinking about estate planning with the use of a Self-Directed IRA, always speak it over with an estate planning accountant/attorney beforehand. This will help you understand the ins and outs of your specific state’s laws, and will help you better understand which situation you’re in so you can make better decisions. However, it’s worth nothing that Self-Directed IRAs may indeed be part of an estate plan, depending on what you want to pass on to the next generation. Self-Directed IRAs typically mean the investor is taking more control—but don’t forget that also gives you the responsibility to seek out the best possible advice from a respectable attorney and accountant.

Interested in learning more about all of the possibilities you can unlock when you use a Self-Directed IRA? There’s always more to learn. You can reach out to us here at American IRA by dialing 866-7500-IRA.