Estate Planning

Estate planning is not just having a Last Will and Testament.  A common misconception among clients is that life insurance and retirement accounts are controlled by the Will.  In reality, the beneficiary designations on life insurance and retirement assets control ultimate distribution for those assets.  It is very important to ensure that the beneficiary designations compliment the Will.  For example, if the Will says your kids receive all assets through a trust until he/she is 30, then the beneficiary designation should name the trust as the beneficiary until the child is 30.  Note, additional provisions are required in the trust to facilitate tax deferral where a trust is the beneficiary of a retirement account.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: