You are here: Home FAQ FAQ Understanding Who Should Be Beneficiary of Your IRA 11. Are there any disadvantages?

11. Are there any disadvantages?

Anytime you name an individual as beneficiary, you lose control. After you die, your beneficiary can do whatever he/she wants with this money, including cashing out the entire account and destroying your carefully made plans for long-term, tax-deferred growth. The money could also be available to the beneficiary’s creditors, spouses and ex-spouse(s). And there is the risk of court interference at incapacity. If any of this concerns you, consider using a trust.

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