Skip to content

Dividing Retirement Benefits In Your Estate Plan

Many individuals have a significant portion of their wealth in their retirement accounts. Having a solid retirement plan is an important part of your financial plan. But what happens to your retirement funds when you pass away? How will your accounts be divided? What choices can you make today that can help minimize the tax issues for your beneficiaries?

These are important questions to consider when developing your estate plan, and the division of retirement benefits can be complex. As a result, it is vital that you work with an attorney with experience creating comprehensive estate plans involving retirement accounts.

Berchem Moses PC has been guiding clients through the estate planning process since 1933. We can explain your options and help you develop the documentation to protect your investments for your spouse, children or other beneficiaries.

Minimizing The Tax Impact Of Your Retirement Funds

Retirement accounts, such as 401(k)s and IRAs can help you avoid payment of income tax and save for the future. However, when the funds are withdrawn, income taxes need to be paid, regardless of whether the funds are paid to you or a beneficiary.

This can place a significant tax burden on your beneficiaries after your death. However, there may be options available to defer the income taxes. The options that will work for you will depend on your situation. We can work with you to discuss your estate plan and determine which options will help you meet your goals. This may include creating or updating a will or a trust to handle retirement funds appropriately.

Get Advice About Your Estate Plan

For advice about your situation and what you should do, contact our firm online or call our lawyers at 203-783-1200. We have offices in Milford and Westport.