How can I minimize or eliminate tax on inherited retirement assets?
A. You can minimize or eliminate tax on inherited retirement assets by using the following methods: • Leave them to your spouse saves estate tax and helps postpone withdrawals subject to income tax. • Leave them to charity saves income and estate tax (though with no financial benefit to the family). • Leave them to family for life, remainder to charity (a charitable remainder trust) reduces estate tax with some benefit to family. • Provide life insurance to pay estate tax on retirement assets provides estate liquidity, avoiding taxable distributions to pay estate tax.
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