Retirement planning is an important step for you to secure your financial future. With the guidance of a seasoned elder law attorney, you can designate beneficiaries and ensure your retirement accounts will be divided appropriately upon your death. Many retirement accounts have specific guidelines you must follow, and a legal professional will be able to guide you through the process.
While no one likes to think about what will happen after their death, proper estate planning is necessary to protect your assets, property, and designated beneficiaries. To discuss your options for retirement benefits in Staten Island, schedule a confidential consultation with Louis Lepore.
Nowadays, most people hold a significant portion of their wealth in their retirement accounts. These types of accounts provide tax-deferred or income tax-free growth for money held in them, but many people are unfamiliar with the specific rules for plan distributions. With proper estate planning, retirement account holders in Staten Island can make the most of their income tax benefits and even pass some of that benefit to their designated beneficiaries.
Upon a retirement account holder’s death, the beneficiary may withdraw their share of the account in full. When they do not, distributions will be based on the beneficiary’s life expectancy, the participant’s remaining life expectancy, or the “five-year rule.”
People who own an IRA or employer retirement benefit account, like a 401(k), designated a beneficiary of the plan when the account was opened. Most retirement plans permit individuals to file formal designations specifying particular persons as beneficiaries. When more than one beneficiary is named, all of them must be individuals, and it must be possible to identify the oldest member of the class.
While a trust account may be identified as a designated beneficiary if it complies with state and federal laws, it is important to note that an individual’s estate is not considered a designated beneficiary. As part of the estate planning process, an attorney in Staten Island will review the benefits of a retirement account to ensure the client’s wishes are reflected by what the company has on file.
Estate planning is crucial to protecting your financial freedom and long-term stability. Your retirement benefits are of significant value, and it is important to ensure your accounts are taken care of when you are not around. You may have designated your spouse or children as beneficiaries of your retirement benefits, or you may want to adjust your designated beneficiaries. We are here to help.
Louis Lepore has years of experience assisting clients in securing retirement benefits in Staten Island and ensuring those benefits are appropriately designated. To learn more about your estate planning options, schedule a consultation today.
(718) 354-8646