A multi-generational IRA is one that allows an individual’s retirement plan to be “stretched” to first-generation beneficiaries as well as subsequent heirs. This is why it has gotten a nickname as the “stretch IRA”. There are some situations when it makes good sense to offer these assets to your loved ones, especially if you don’t anticipate needing access to those funds during your own retirement. 
A beneficiary younger than you will be able to stretch out of the life of the IRA by taking required minimum distributions over the course of his or her life. This allows money to stay inside the IRA with the potential for continued growth that reaps the benefits of tax deferment. When done properly, this is a great tool for growing wealth while deferring taxes.
This is often a good fit for people who have a qualified plan and for those who don’t believe they will need to access those funds for their own retirement. In a standard retirement planning scenario, the money could be depleted with estate taxes or accelerated income, so this can be a viable alternative when you don’t necessarily need access to the funds but want to pass on some benefits to future generations.
A multigenerational IRA is just one planning option for passing on assets to your heirs. Consult an experienced estate planning attorney for more opportunities. Call us at 732-521-9455.