|Have you reviewed your will or trust in the last 3 years?
When I design an estate plan for my clients, I discuss the importance of reviewing the plan every 3 years. A lot can change in a few years. If I prepared the will or trust for you, I would love to sit down at no charge with you and your family to discuss what has changed since you prepared the will or trust.
Questions to consider are:
Does your estate plan include the proper language for HIPAA ("Privacy Laws")?
Does your trust or will protect your beneficiaries against divorce, lawsuits and creditors?
Do we need to discuss protecting your assets in the event you need to go into a nursing home?
Who will take care of your children if you can't?
If your will or trust was prepared when the children were young, are your children now grown?
This month’s article is the last in a series on protecting inherited retirement plans.
Read more about updating your wills and trusts on Leigh's blog.
Protecting Inherited Retirement Plans - Part 4
And now we have finally reached the last portion of our spread on protecting your inherited retirement funds. Please read the previous entries from March, April, and May to capture the entire article!
Benefits and Detriments of Creating a Retirement Plan Trust to Be the Beneficiary of an IRA or Qualified Plan
The Retirement Plan Trust, like any estate planning technique, is not a panacea. One size definitely does not fit all. To determine whether a Retirement Plan Trust is an appropriate option for a particular client requires a weighing of benefits against disadvantages.
Retirement Plan Trust Benefits
Establishing a Retirement Plan Trust and naming it as the beneficiary of an IRA or qualified plan can provide a number of benefits. These include:
To learn more about protecting inherited retirement plans, visit our blog.
Spendthrift protection - Protecting the individual trust beneficiary from his or her temptation to waste "found money."
Predator protection - Even if the individual beneficiary does not have spendthrift tendencies, there are many out there whose interest lies in separating the beneficiary from their money and property.
Creditor protection - Ours is a litigious society in which we never know who is going to be the target of a lawsuit. A trust makes the beneficiary a less attractive "target."
Divorce protection - With the national divorce rate above 50%, it is impossible to determine which marriages will stand the test of time. A Retirement Plan Trust keeps the inherited IRA from being divided or even lost in a divorce.
Thank you for the referrals!
Bonnie Resnick Destruel