Cone Marshall, a leading tax and trust establishment law firm in New Zealand, has recently held an informative session with local attorneys to discuss the importance of IRA beneficiary appointments. Representatives from the law firm stated that the session was conducted in an effort to educate future tax and trust establishment attorneys about the details involved in the daily practice of New Zealand tax law. Geoffrey Cone, one of Cone Marshall’s founding partners and the leader of the law firm, stated that the new attorneys should be informed about IRA Beneficiary laws in order to appropriately advise clients regarding beneficiary appointments, ensure that beneficiaries to IRAs are legally able to hold the position, and to encourage clients to develop back-ups for IRAs.
Appropriate Advisement of Clients Regarding Beneficiary Appointments
Cone Marshall representatives stated that the appropriate advisement of clients regarding beneficiary appointments is an extremely vital factor to both attorneys and clients. If attorneys are not knowledgeable about the legal standards of IRA beneficiary appointments, they could lead clients to potential law suits and other negative litigation.
Ensuring That Beneficiary Appointments Are Legal
Representatives from the Cone Marshall law firm also emphasized the fact that attorneys who advise clients about IRA beneficiary appointments must possess the ability to determine whether or not specific beneficiary appointments are legal in the client’s country of residence. The appointment of a trust as an IRA beneficiary, for example, is not legal in New Zealand except in certain circumstances. If an attorney is unaware that the trust must meet specific standards in order to be designated as a beneficiary to an IRA, the client could eventually face negative legal consequences.
Encouraging Clients to Develop IRA Back-Ups
Representatives from the Cone Marshall law firm also discussed the necessity for new attorneys to encourage clients to develop back-ups for their IRAs. Many New Zealand resident develop IRAs in an effort to save money for retirement, but do not consider what the status of the account will be in the event that the account developer becomes deceased. By encouraging clients to appoint a beneficiary to the account, attorneys can help clients to develop a true sense of security about their future plans and financial goals.
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