I want to better understand using a Roth IRA to fund a credit shelter trust. For example:

I have clients who are husband and wife in their early 60's. They have approx $1M in qualified money (all in his name) and another $300K in other assets. I'm going to recommend that they convert to a Roth (they are eligible based on their AGI). Can someone point me to an article or publication on estate planning with a Roth? What is the best way to fund the credit shelter trust in each case (husband dies first, wife dies first). Once the $ is in the credit shelter trust, how is the best way to hold it? Taxable account? Variable annuity? Or, is the deferal potential so great for their 5 kids that I should ignore funding the credit shelter?

Any comments or pointers to books or articles would be appreciated.

Best Regards,

Jeff

See my column on this subject in a recent issue of the CCH Journal of Retirement Planning www.cch.com.

Where you don't have enough nonretirement assets to fully fund the credit shelter trust, there is a tradeoff between the income tax benefits of a rollover (if you leave the retirement benefits to the spouse) and the potential estate tax benefits of leaving retirement benefits to the credit shelter trust to the extent necessary to fully fund it.

You may wish to associate with competent tax/estates counsel.

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Bruce Steiner, attorney
(212) 986-6000 (NY office)
(201) 862-1080 (NJ office)
also admitted in FL

Hello Bruce,

I went to www.cch.com and tried to find your column. Is it actually online? How do I track down your column?

Best Regards,

Jeff

No, the column itself is not online. The website is that of CCH, the publisher of the Journal of Retirement Planning.

The best way to make sure you get all of my future columns is to subscribe to the publication.

If you want a copy of any of my previous columns, let me know which one(s) and where to mail them.

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Bruce Steiner, attorney
(212) 986-6000 (NY office)
(201) 862-1080 (NJ office)
also admitted in FL