Everyone has their own dreams and passion about their future. But, have you ever considered of a future that you are not a part of? It might seem morbid to talk about these things, but San Diego estate planning is a responsible thing to do to create a better life for your loved ones. In most of the cases, many people plan for retirement, but only few people show their interest in estate planning and how their assets will be distributed between their loved ones.
In retirement planning, there comes a stage when the focus shifts from accumulating wealth to maintaining the funds. Designating these funds by a long-term care event is essential to enjoy a comfortable retirement. Hence planning your estate, while framing strategies for your retirement plan, is a better way to ensure that your loved ones are not caught in the middle of any legal disputes.
How to Make Your Retirement Plan Work Well with Estate Planning
If you are wondering how your estate plan works well with your retirement plan, here we have listed a few things to consider.
Naming the Same Beneficiaries
Do your will or trust features the same beneficiaries of your retirement plans? Naming the same beneficiary is not an essential requirement but make sure that the designation of the beneficiaries is correct. This step is mandatory because it is very easier to forget about the designated beneficiaries when life changing situations like divorce, adoption occurs. In addition, if you have minor children, you may want to consider naming your living trust as your retirement plan beneficiary. In doing so, you can avoid an outright distribution to your children.
Don’t Think that Your Will Control Your Retirement Plan
If you are among the group of persons who thinks that your will or trust could control your retirement plans in future, then you are wrong! If you name your trust as the named beneficiary or your estate as the named beneficiary, it requires probate and may control your retirement plan. Thus, it has nothing to do with who receives your retirement saving and how they receive it.
Consequences that Occur When Estate Planning and Retirement Plans Doesn’t Work Together
Anyone who fails to articulate their desires of designating assets in an estate plan during retirement planning may face several consequences that affect their course of life and loved ones. Your family members will be pushed to face several difficult legal constraints and decisions that may affect their lives directly or indirectly.
Consequences of Skipping Estate Planning
- Probate Cost
- Having no proper estate plan forces your loved ones or family members to submit some or all of the assets to probate. If the deceased had not left things in order, then the time taken to probate would also be delayed. Probate can take as long as several years, all during which time your assets will be tied up.
- Family Turmoil
- Legacy managed by the wrong person (a court appointed person)
- Unnecessary delay and expense in resolving estate and more.
No one likes to put their loved one in any difficult situations. So, even if you think that you do not have any significant assets, designating your personal belongings among your loved ones will pay off in the long run. While sitting down to prepare your retirement plans, talk to your estate planning attorney in San Diego to accomplish both goals with an eye towards future.