Synthetic Roth IRA
 

Synthetic RothA Synthetic Roth IRA ("Synthetic Roth" or "SynRoth") is designed to mirror the desired feature of a typical Roth IRA -- which is tax deferral of investment income on post-tax dollars -- but also to eliminate the primary estate planning disadvantage of the traditional Roth, which is that its value is trapped in the estate of the owner at death.

The Synthetic Roth accomplishes its objectives by melding a particular type of irrevocable trust that is taxed as a grantor trust with a particular type of cash value life insurance product. The life insurance product provides the umbrella for tax-free investment growth, while the trust effectively removes the death benefit of the policy outside the estate.

An additional advantage of the Synthetic Roth is that the cash value accumulated within the life insurance product and any death benefit will be protected from the creditors of both the owners and beneficiaries. This is a very significant edge since few states give substantial creditor exemptions to Roth IRAs.

The Synthetic Roth's downsides is that it is probably limited in its efficiency to affluent individuals whose estate will face federal estate tax at death, meaning those with estates in excess of $1 million. Additionally, the owner of the Synthetic Roth needs to be under the age of 60 and in reasonably good or at least average health to avoid high expenses within the insurance product.

Click Here for more information about the Synthetic Roth IRA.
 

The Synthetic Roth provides the basic advantages of a traditional Roth IRA, but with greatly enhanced estate planning advantages too.

 

Our unique strategies are door-openers for high net worth clients, and provides them with value-added services that the typical advisor or agent will never be able to compete with.

 

 

These strategies are completely domestic, with no offshore or hidden component, and all planning aspects are fully discloseable to the IRS without heightening audit risks.

  
  Selected Strategies 
 
BETIR Trust   Beneficiary-Taxed Irrevocable Trust (BETIR Trust)
Probably the strongest estate planning and asset protection trust so far created, which may be created in any state. This BETIR Trust is ideal for selling Trust-Owned Life Insurance (TOLI).
     
Captive Insurance Companies   Closely-Held Insurance Company (CHIC)
a variation of a Captive Insurance Company
Nearly all major corporations now have captive insurance companies, and they are now being utilized by smaller businesses. The CHIC in appropriate circumstances can allow clients to purchase life insurance outside their estate with effectively pre-tax dollars.
     
BICOCO Billing & Collection Company   Billing & Collection Company (BICOCO)
Protects accounts receivables and revenue sources more efficiently than an A/R financing program, but without requiring the client to obtain a loan, make personal guarantees or loan payments, and which can be funded with either annuities or life insurance purchased outside the estate.
     
RetireZ   RetireZ Plan
A non-qualified and heavily asset protected retirement plan that allows the participant to put away nearly an unlimited amount as well as protect the payments from creditors as they are made. A must-have for high-risk professionals.
 

 

  Contact Information
 

Those desiring to be clients of the firm should call 949.629.1176 to schedule a brief free call with a partner of the firm for the sole purpose of evaluating whether the matter and representation would be suitable. We do not answer general questions by phone. General questions directed to the firm should be e-mailed to:

questions  >at<  risad.com

Legal issues about the firm or this website should be transmitted by fax to 877.698.0678 or by mail to Jay Adkisson at 100 Bayview Circle, Suite 210, Newport Beach, CA 92660. Main office locations: Athens, Georgia and Orange County, California

 

 

 

 

 

© 2008 by Riser Adkisson LLP. All rights reserved. This website may not be reproduced in whole or in any part without the express written permission of Riser Adkisson LLP.  The firm's attorney who is responsible for this website is Jay Adkisson. Issues regarding this website should be directed to Mr. Adkisson by fax to 877.698.0678 or by mail to 100 Bayview Circle, Suite 210, Newport Beach, CA 92660.

Riser Adkisson LLP does not practice in any jurisdiction unless one its attorneys has been admitted to practice there, or an attorney of the firm has been properly admitted pro hac vice according to the local court rules of that state. Nothing in this website should be construed to be any advertisement for legal services directed to a state wherein Riser Adkisson LLP is not admitted to practice. Nothing in this website is any substitute for the services of a licensed attorney in the relevant jurisdiction.  Persons resident in a state where Riser Adkisson LLP does not have an attorney regularly admitted to practice law should consult with their own local licensed attorney about that attorney retaining Riser Adkisson LLP to assist the local attorney with any client matters that such attorney believes our services and advice would be helpful.

The information given in this website does not constitute legal or accounting advice or opinion, and should not be relied upon for any planning purposes. It is provided solely and exclusively for general, non-specific educational purposes, and to advise the reader of the nature of the services offered individually by us. Planning of this nature is necessarily very circumstance-specific and therefore it would be dangerous to apply the very general rules described herein to any singular fact-pattern. Prudence demands that you consult with an experienced professional licensed in your state before attempting any of the planning techniques described herein. Additionally, the information given in this website is not meant to be a substitute for legal representation. You should consult with your local attorney regarding your suitability for the techniques stated herein under your local laws.

Except as may be specifically described in a fully-executed client engagement letter, Riser Adkisson is not your counsel and you will not rely upon Riser Adkisson LLP for any advice, counsel or suggestions as to the proposed or actual tax treatment of any transaction. Likewise, Riser Adkisson LLP does not make any guarantees or assurances in connection with any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence demands that you retain independent professional tax counsel to objectively advise you on any tax consequences of any product, transaction or strategy discussed by Riser Adkisson LLP. Prudence also demands that you retain appropriately qualified and independent tax professionals to advise you of your tax compliance and reporting requirements.