Page 2 - Hobe Sound Reflections - December '19

Page 2, Hobe Sound

The Dolphin Bar And Shrimp House’s Golf from page 1 with 400 charitable organizations in Indian River, St. Lucie,
LegaL TaLk The fundraiser was embraced by people and businesses in the Martin, and Okeechobee counties. In addition to emergency food
distribution, Treasure Coast Food Bank operates a full roster
community, notably, Ken Duke and Friends Celebrity Pro-Am. of direct service programs that not only solve the immediate
PGA Golf Professional and philanthropist Ken Duke created problem of hunger, but help individuals and families gain long-
The Importance Of Proper the nonprofit to support local and national organizations. term food security, better health outcomes, and self-sufficiency.
“This was a fantastic event at two beautiful venues, and

Treasure Coast Food Bank is a member of Feeding America, the
IRA Planning we’re so grateful to The Dolphin Bar and Shrimp House and nationwide network of 200 food banks that leads the fight against
its management team, Dustin Spadavecchia and Brian Kelly, hunger in the United States. For more information on Treasure
By Ryan C. Abernethy, for making us a part of it,” said Judith Cruz, president and CEO Coast Food Bank, call
Associate Attorney and of Treasure Coast Food Bank. “Hunger is a constant for some (772) 489-3034, log
Counselor at Law people in our community, and it’s especially heartwarming to on to stophunger.org,
When we first meet have support like this for improving the lives of those who don’t visit our Facebook
with a client we talk always know where their next meal is coming from.” page at facebook.com/
about setting goals and The winning team of the tournament was the Edward Jones tcfoodbank, or follow
objectives and review Investment Dream Team. Teammates Ted Tavolario, Randy us on Twitter at twitter.
current assets. Often McCroby, Ray Davies, and Steve Elliot shot a 12 under par com/tcfoodbank.
we find that a portion of in the best ball scramble. McCroby also won the prize for the
these assets consist of longest drive of the day. Photos by
qualified retirement plan The award for closest to the pin went to Sevan Hashas. And Jacqueline Kenny Mason Cremasco and Gabriel Ghazel
assets (IRA accounts, Gabriel Ghazel impressed the crowds with the biggest shot of
401(k) accounts, etc.). the day on hole No. 12. He shot a hole in one on the par-3, 127-
Most clients view these retirement plans as “just yard hole.
another asset” to be distributed at their death in Players and friends who attended the awards banquet
accordance with their planning documents. However, had numerous chances for raffle prizes, including restaurant
depending on that client’s estate pre-planning, that gift cards, event tickets, and more golf outings, thanks to the
mindset could lead to severe tax consequences or an generosity of many donors. Each player also took home a well-
unintended distribution result. stocked swag bucket.
One important situation involves planning for a About Treasure Coast Food Bank
surviving spouse. Often, spouses name each other as Treasure Coast Food Bank is the only food bank and largest
beneficiaries of retirement plan accounts. This is a hunger relief organization on Florida’s Treasure Coast, providing
simple and often appropriate choice in “first-marriage” the community each year with millions of meals valued at more Kristin Kalinowski, Andrea Dawedeit, Mary Beth Cunnane,
situations but significantly more complicated in second than $50 million through robust programs and in partnership and Joseph Cunnane
or third marriages or in “blended families” with children
from prior relationships.
With blended families, it may be more appropriate
to name a trust that benefits the surviving spouse as the
beneficiary of all or a portion of the client’s retirement
plan accounts. This lets the surviving spouse receive a
defined benefit from the account for the remainder of
their lifetime, but ensures that he or she doesn’t have
full control of distributions from the account and can’t
alter the account’s remainder beneficiaries. A clear
examination of potential implications if making this
choice must be explained to the client prior to naming
a trust as a “designated beneficiary.”
Generally, when a trust is named as a designated
beneficiary, larger required minimum distribution
(“RMDs”) must be withdrawn annually following the
account holder’s death. Account distributions passing
to the trust (rather than directly to the surviving spouse)
provide greater control, but may result in the majority of
the retirement account being dispersed by RMDs during
the surviving spouse’s lifetime, thereby decreasing what
eventually passes to remainder beneficiaries. Further,
RMDs are taxed to the recipient as ordinary income:
larger RMDs equals higher tax burden!
Naming the spouse as direct beneficiary of
a retirement account means lower annual RMD
distributions, “stretching” its lifespan. This may lead
to a larger balance going to the account’s remainder 62 Marina Gardens Drive
beneficiaries upon the surviving spouse’s death – Palm Beach Gardens
assuming he or she doesn’t accelerate withdrawal of
account funds or alter remainder beneficiaries during
their lifetime.
This is just one potential pitfall associated with
retirement account planning. Clients with children too Private Gated Community
young to manage an inheritance, who have a special-
needs child, or plan to leave money to charities also Upscale, Urban Lifestyle
benefit from proper retirement account planning.
If retirement accounts are part of one’s assets, Walking Distance to
meeting with a qualified attorney to ensure beneficiaries
don’t bear the tax costs of improper planning is amazing Dining,
critically important. Boutiques and Carmines
Gourmet Market

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