The Listen to Lawrence Letter: Sometimes you just have to run!

READER QUESTION:

Dear Lawrence,

We just met with our financial planner, and he suggested that we put our IRAs in our Irrevocable Trust. What are the pros and cons of doing this? As always, thanks for your informative newsletters.

MY RESPONSE:

YOUR PLANNER IS AN IDIOT! Transferring an IRA to an irrevocable trust would trigger the income tax on the entire amount. Find another financial planner.

I hope this helps!