If my spouse & I assume different households, can we legally divide financial assets, ie IRAs & other investments?
Zephyrhills, FL |
If we can, how should we proceed? By doing this, I could continue to be covered by my husband's health insurance. We live in Florida. We are both retired and agree to split assets half & half but the assets are currently in his name only. Thank You.
Most likely, most of the assets could be split. We often split assets by using trusts, but it can be done in other ways. However, an IRA is a retirement plan and beneficiaries must be designated. The only way we have split an IRA is through divorce proceedings. The best way to handle a split and any tax consequences is to consult an estate planning attorney to assist you.
I agree with Attorney McMahon. I would add that, while you may be able to liquidate the IRA, in order to accomplish this split, doing so would likely create tax liability and perhaps penalties, as well, depending on your husband's age. I agree that you should meet with an estate planning attorney to discuss this in more detail.
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Both attorney offer sound advice. You need an estate attorney to get into the particulars and craft a program and documentation to effectuate it. Do not try this on your own, especially here where you have some very specific and special goals.
For more on estate planning and other issues, see Estate Planning Mistakes: 5 Not So Easy Pieces at http://www.sjfpc.com/estate_planning_drafting_wills_trusts.html. Please hit the like button at the end of the article if you found it helpful.
Hope this helps.
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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is firstname.lastname@example.org , his website is www.sjfpc.com. and his blog is <http://frommtaxes.wordpress.com/>
Mr. Fromm is ethically required to state that the response herein is not legal advice and does not create an attorney/ client relationship. Also, there are no recognized legal specialties under Pennsylvania law. Any references to a trust, estate or tax lawyer refer only to the fact that Mr. Fromm limits his practice to these areas of the law. These responses are only in the form of legal education and are intended to only provide general information about the matter within the question. Oftentimes the question does not include significant and important facts and timelines that if known could significantly change the reply or make such reply unsuitable. Mr. Fromm strongly advises the questioner to confer with an attorney in their state in order to ensure proper advice is received.
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