Newly Launched “Stretch IRA” Estate Plan Helps Financial Advisors, CPAs and Attorneys Attract More Affluent Clients

Individual Retirement Accounts aren't new: they were first authorized by Congress 34 years ago. But IRAs have created a taxing new problem for beneficiaries who inherit them—and a lucrative new business opportunity for estate planners who protect them.

San Diego, CA - May 15th, 2008 — LegacySafe Publishing Company today announced the release of its premier publication, LegacySafe®: The Living Estate Plan For Individual Retirement Accounts. This revolutionary new estate plan provides a unique formalized process to help IRA beneficiaries avoid the sometimes catastrophic tax consequences of inheriting a large IRA. LegacySafe is available exclusively through LegacySafe Publishing Company and distributed by LegacySafe Authorized IRA Advisors. More information is available online at www.LegacySafe.com.

Since they were first established in the mid-1970s, Americans have been socking away trillions of dollars in tax-deferred IRAs. Now, a massive void in estate planning is being revealed as the oldest generation of IRA account owners passes away.

Unless the correct processes are followed, the IRS will consider the entire IRA windfall as "ordinary income" to the beneficiary who inherits the account. So in addition to losing a loved one, IRA beneficiaries are often experiencing the largest one-time taxable event in their lives, simply out of ignorance of the tax laws. In some cases, beneficiaries lose one-third of the account or more to the IRS.

When set up and administered appropriately, a "Stretch IRA" can help a beneficiary avoid this unexpected tax burden. But according to Certified Financial Planner Rick Bueter, less than half of all tax-deferred IRAs are set up correctly. Recognizing this estate planning void, Bueter founded LegacySafe Publishing to provide a formalized plan and process to protect these family legacies.

With over $10 trillion currently held in IRA accounts, "there are millions of Americans who desperately need this kind of estate planning," says Bueter. "We could save beneficiaries hundreds of millions of dollars in unnecessary taxes. And that's what creates a business opportunity for attorneys, CPAs and financial advisors."

"With the right information, a beneficiary can spread the IRA inheritance tax liability and distribution over a lifetime…allowing the IRA to keep growing for decades." But this opportunity is squandered, more often than not, because it requires such diligence on the part of the IRA owner, executor, trustee and beneficiary. "That's why families need a comprehensive IRA estate plan like LegacySafe," says Bueter.

Administered in conjunction with a LegacySafe Authorized IRA Advisor, the LegacySafe "Living Estate Plan For IRAs"  provides the "continuity of administrative steps, organizational tools and IRS requirements that start during the IRA owner's life, and continue beyond their passing," says Bueter.

As a LegacySafe Authorized IRA Advisor, "you're able to make a profound difference for a family—saving individual beneficiaries tens of thousands, if not hundreds of thousands of dollars in taxes. This, in itself, is very fulfilling," says Bueter. "What's more, LegacySafe is a starting point for family pre-inheritance conversation. It gives owners of high-balance IRAs a real incentive to call on you and develop an ongoing—and potentially lucrative—relationship."

Fee-based advisors can provide LegacySafe as a new service and Commission-based advisors can provide LegacySafe as a value-added service with new and existing clients. "When it comes to estate planning, LegacySafe can give an attorney, CPA or financial advisor a real competitive advantage in their marketplace," says Bueter.

A conversation with an elderly husband and wife spurred Bueter to create the LegacySafe system. "This couple in their seventies sat down with me to do an estate plan…and more than 70% of their million-dollar estate was in IRA holdings," says Bueter. "They were proud of the legacy they planned to leave for their loved ones…but they were appalled to find out that almost as much of it would go to the IRS as would go to their children and grandchildren. So I set out to develop an IRA estate planning process that eventually became LegacySafe." Bueter's research for LegacySafe included interviews with dozens of estate planners, certified public accountants, attorneys and other professionals.

For more information about becoming an LegacySafe Authorized IRA Advisor, visit www.LegacySafe.com to sign up for a free webinar presentation. Or contact Rick Bueter, CFP at (858) 527-1101.

Contact:

Rick Bueter, CFP
President, LegacySafe® Publishing Company
Phone: 858-527-1101
Cell: 858-775-6367
Email: [email protected]