A big decision for everyone saving and planning for retirement (in addition to basic estate planning, of course) is how to best take advantage of tax-deferred plans. Too often, retirement plans are not handled properly, either on the financial end or on the legal end.
For example, who do have named as a beneficiary and contingent beneficiary of your retirement plan? Is it your children? Your revocable living trust? The right answer may be neither. Instead, a retirement plan trust may make the most sense to maximize tax deferment for your beneficiaries.
Unfortunately, as a Certified Elder Law Attorney and Holisitic Bucket Planning Advisor, we at The Elder Care Firm see advisors and attorneys mixing up things as simple as who to name as beneficiary of your retirement accounts.
As part of our holistic process–we assist clients with reviewing their retirement accounts, investments, how they are titled and look to the most tax efficient methods as possible to pass these complex assets to the next generation, while considering other income sources, such as Social Security.
As elder law attorneys we are frequently asked to assist our clients with estate, long-term care and investment planning. Unfortunately, we often find that our clients have been misled or have not been fully advised about investment products leading to significant mistakes in their investment planning. These mistakes jeopardize our clients’ future income, their ability to provide for their own support and to leave inheritances to their children.
Take advantage of the attorney client relationship to have your retirement plan reviewed by someone who is on the same side of the table as you and not looking to sell you on the latest stock or insurance product and is not beholden to a broker dealer. Someone who truly looking out for your best interests, versus someone who says they are a fiduciary.