Estate planning at Inspira Financial

Yes, a self-directed IRA with illiquid assets can pass to a named beneficiary, but the distribution logistics are more complex than with cash or publicly traded securities. The inheriting beneficiary must work with Inspira to arrange distribution of the alternative asset itself or liquidation proceeds within the applicable IRS timeline (generally 10 years for non-eligible designated beneficiaries). Inspira does not sell or appraise alternative assets on behalf of beneficiaries; the beneficiary typically retains an appraiser, negotiates a sale, or takes an in-kind distribution of the asset (which triggers recognition of fair market value as ordinary income in the year of distribution). Estate planning for self-directed IRA owners with illiquid holdings should account for liquidity needs and potential tax impact on beneficiaries.